EXECUTION
PARTICIPATION AGREEMENT
AMONG
HARTFORD LIFE INSURANCE COMPANY,
HARTFORD LIFE AND ANNUITY INSURANCE COMPANY,
PIMCO EQUITY SERIES VIT
AND
PIMCO INVESTMENTS LLC
THIS AGREEMENT dated and effective as of the 28th day of April, 2011, by and
among Hartford Life Insurance Company and Hartford Life and Annuity Insurance
Company, each a Connecticut corporation (collectively, the "Company") and a
Connecticut life insurance company, on its own behalf and on behalf of each
segregated asset separate account of the Company set forth on Schedule A hereto,
as may be amended from time to time (each account hereinafter referred to as the
"Account"), PIMCO Equity Series VIT (the "Fund"), a Delaware statutory trust,
and PIMCO Investments LLC (the "Underwriter"), a Delaware limited liability
company.
WHEREAS, the Fund engages in business as an open-end management investment
company and is available to act as the investment vehicle for separate accounts
established for variable life insurance and variable annuity contracts (the
"Variable Insurance Products") to be offered by insurance companies which have
entered into participation agreements with the Fund and Underwriter
("Participating Insurance Companies");
WHEREAS, the shares of beneficial interest of the Fund are divided into several
separate series of shares, each designated a "Portfolio" and representing the
interest in a particular managed portfolio of securities and other assets;
WHEREAS, the Fund may rely on an order (PIMCO VARIABLE INSURANCE TRUST, ET AL.,
Investment Company Act Rel. Nos. 22994 (Jan. 7, 1998) (Notice) and 23022 (Feb.
9, 1998)(Order)) from the Securities and Exchange Commission (the "SEC")
granting Participating Insurance Companies and variable annuity and variable
life insurance separate accounts exemptions from the provisions of sections
9(a), 13(a), 15(a), and 15(b) of the Investment Company Act of 1940, as amended,
(the "1940 Act") and Rules 6e-2(b)(15) and 6e-3(T)(b)(15) thereunder, if and to
the extent necessary to permit shares of the Fund to be sold to and held by
variable annuity and variable life insurance separate accounts of both
affiliated and unaffiliated life insurance companies (the "Mixed and Shared
Funding Exemptive Order");
WHEREAS, the Fund is registered as an open-end management investment company
under the 1940 Act and shares of the Portfolios are registered under the
Securities Act of 1933, as amended (the "1933 Act");
WHEREAS, Pacific Investment Management Company LLC (the "Adviser"), which serves
as investment adviser to the Fund, is duly registered as an investment adviser
under the federal Investment Advisers Act of 1940, as amended;
WHEREAS, the Company has issued or will issue certain variable life insurance
and/or variable annuity contracts supported wholly or partially by the Account
(the "Contracts"), and said Contracts are listed in Schedule A hereto, as it may
be amended from time to time;
WHEREAS, the Account is duly established and maintained as a segregated asset
account, duly established by the Company, on the date shown for such Account on
Schedule A hereto, to set aside and invest assets attributable to the aforesaid
Contracts;
WHEREAS, the Underwriter, which serves as distributor to the Fund, is registered
as a broker dealer with the SEC under the Securities Exchange Act of 1934, as
amended (the "1934 Act"), and is a member of the Financial Industry Regulatory
Authority ("FINRA"); and
WHEREAS, to the extent permitted by applicable insurance laws and regulations,
the Company intends to purchase shares in the Portfolios listed in Schedule A
hereto, as it may be amended from time to time (the "Designated Portfolios") on
behalf of the Account to fund the aforesaid Contracts, and the Underwriter is
authorized to sell such shares to the Account at net asset value;
NOW, THEREFORE, in consideration of their mutual promises, the Company, the Fund
and the Underwriter agree as follows:
ARTICLE I. SALE OF FUND SHARES
1.1. The Fund has granted to the Underwriter exclusive authority to distribute
the Fund's shares, and has agreed to instruct, and has so instructed, the
Underwriter to make available to the Company, for purchase on behalf of the
Account, Fund shares of those Designated Portfolios selected by the Underwriter.
Pursuant to such authority and instructions, and subject to Article IX hereof,
the Underwriter agrees to make available to the Company for purchase on behalf
of the Account, shares of those Designated Portfolios, such purchases to be
effected at net asset value in accordance with Section 1.3 of this Agreement.
Notwithstanding the foregoing, the Board of Trustees of the Fund (the "Board")
may suspend or terminate the offering of Fund shares of any Designated Portfolio
or class thereof, or liquidate any Designated Portfolio or class thereof, if
such action is required by law or by regulatory authorities having jurisdiction
or if, in the sole discretion of the Board acting in good faith, suspension,
termination or liquidation is necessary in the best interests of the
shareholders of such Designated Portfolio.
1.2. The Fund shall redeem, at the Company's request, any full or fractional
Designated Portfolio shares held by the Company on behalf of the Account, such
redemptions to be effected at net asset value in accordance with Section 1.3 of
this Agreement. Notwithstanding the foregoing, (i) the Company shall not redeem
Fund shares attributable to Contract owners except in the circumstances
permitted in Section 1.3 of this Agreement, and (ii) the Fund may delay
redemption of Fund shares of any Designated Portfolio to the extent permitted by
the 1940 Act, and any rules, regulations or orders thereunder.
1.3. Purchase and Redemption Procedures
(a) The Fund hereby appoints the Company as an agent of the Fund for the
limited purpose of receiving purchase and redemption requests on
behalf of the Account (but not with respect to any Fund shares that
may be held in the general account of the Company) for shares of
those Designated Portfolios made available hereunder, based on
allocations of amounts to the Account or subaccounts thereof under
the Contracts and other transactions relating to the Contracts or
the Account. Receipt and acceptance of any such request (or relevant
transactional information therefore) on any day the New York Stock
Exchange is open for
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trading and on which the Fund calculates its net asset value pursuant
to the rules of the SEC (a "Business Day") by the Company as such
limited agent of the Fund prior to the time that the Fund ordinarily
calculates its net asset value as described from time to time in the
Fund's statutory prospectus, as such term is defined in Rule 498 under
the 1933 Act (which as of the date of execution of this Agreement is
4:00 p.m. Eastern Time) shall constitute receipt and acceptance by the
Fund on that same Business Day, provided that the Fund or its
designated agent receives notice of such request by 9:00 a.m. Eastern
Time on the next following Business Day.
(b) The Company shall pay for shares of each Designated Portfolio on the
same day that it notifies the Fund of a purchase request for such
shares. Payment for Designated Portfolio shares shall be made in
federal funds transmitted to the Fund by wire to be received by the
Fund by 4:00 p.m. Eastern Time on the Business Day the Fund is
notified of the purchase request for Designated Portfolio shares
(which request may be net of redemptions of shares). If federal funds
are not received on time, such funds will be invested, and Designated
Portfolio shares purchased thereby will be issued, as soon as
practicable and the Company shall promptly, upon the Fund's request,
reimburse the Fund for any charges, costs, fees, interest or other
expenses incurred by the Fund in connection with any advances to, or
borrowing or overdrafts by, the Fund, or any similar expenses
incurred by the Fund, as a result of portfolio transactions effected
by the Fund based upon such purchase request. Upon receipt of federal
funds so wired, such funds shall cease to be the responsibility of
the Company and shall become the responsibility of the Fund.
(c) Payment for Designated Portfolio shares redeemed by the Account or
the Company shall be made in federal funds transmitted by wire to
the Company or any other designated person on the next Business Day
after the Fund is properly notified of the redemption order of such
shares (which order shall be net of any purchase orders) except that
the Fund reserves the right to redeem Designated Portfolio shares in
assets other than cash and to delay payment of redemption proceeds
to the extent permitted under Section 22(e) of the 1940 Act and any
Rules thereunder, and in accordance with the procedures and policies
of the Fund as described in the then current statutory prospectus
and/or statement of additional information ("SAI"). The Fund shall
not bear any responsibility whatsoever for the proper disbursement
or crediting of redemption proceeds by the Company; the Company
alone shall be responsible for such action.
(d) Any purchase or redemption request for Designated Portfolio shares
held or to be held in the Company's general account shall be effected
at the net asset value per share next determined after the Fund's
receipt of such request, provided that, in the case of a purchase
request, payment for Fund shares so requested is received by the Fund
in federal funds prior to close of business for determination of such
value, as defined from time to time in the Fund's statutory
prospectus.
(e) The Company shall not redeem Fund shares attributable to the
Contracts (as opposed to Fund shares attributable to the Company's
assets held in the Account) except (i) as necessary to implement
Contract owner initiated or approved transactions, (ii) as required
by state and/or federal laws or regulations or judicial or other
legal precedent of general application (hereinafter referred to as a
"Legally Required Redemption"), (iii) upon 45 days prior written
notice to the Fund and the Underwriter, as permitted by an order of
the SEC pursuant to Section 26(e) of the 1940 Act, but only if a
substitution of other securities for the shares of the Designated
Portfolios is consistent with the terms of the Contracts, or (iv) as
permitted under the terms of the Contracts. Upon request, the
Company will promptly furnish to the
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Fund reasonable assurance that any redemption pursuant to clause
(ii) above is a Legally Required Redemption. Furthermore, except in
cases where permitted under the terms of the Contracts, the Company
shall not prevent Contract owners from allocating payments to a
Designated Portfolio that was otherwise available under the
Contracts without first giving the Fund 45 days notice of its
intention to do so.
(f) Notwithstanding anything herein to the contrary, the Company, Fund
and/or Underwriter shall comply with the processing specifications
set forth in SCHEDULE C attached hereto and made a part hereof in
respect of transactions processed through the facilities of the
National Securities Clearing Corporation ("NSCC").
1.4. The Fund shall use its best efforts to make the net asset value per share
for each Designated Portfolio available to the Company by 7:00 p.m. Eastern Time
each Business Day, and in any event, as soon as reasonably practicable after the
net asset value per share for such Designated Portfolio is calculated, and shall
calculate such net asset value in accordance with the Fund's statutory
prospectus. Neither the Fund, any Designated Portfolio, the Underwriter, nor any
of their affiliates shall be liable for any information provided to the Company
pursuant to this Agreement which information is based on incorrect information
supplied by the Company or any other Participating Insurance Company to the Fund
or the Underwriter.
1.5. The Fund shall furnish notice (by wire or telephone followed by written
confirmation) to the Company as soon as reasonably practicable of any income
dividends or capital gain distributions payable on any Designated Portfolio
shares. The Company, on its behalf and on behalf of the Account, hereby elects
to receive all such dividends and distributions as are payable on any Designated
Portfolio shares in the form of additional shares of that Designated Portfolio.
The Company reserves the right, on its behalf and on behalf of the Account, to
revoke this election and to receive all such dividends and capital gain
distributions in cash. The Fund shall notify the Company promptly of the number
of Designated Portfolio shares so issued as payment of such dividends and
distributions.
1.6. Issuance and transfer of Fund shares shall be by book entry only. Share
certificates will not be issued to the Company or the Account. Purchase and
redemption orders for Fund shares shall be recorded in an appropriate ledger for
the Account or the appropriate subaccount of the Account.
1.7. (a) The parties hereto acknowledge that the arrangement contemplated by
this Agreement is not exclusive; the Fund's shares may be sold to other
insurance companies (subject to Section 2.2(ii) hereof) and the cash value of
the Contracts may be invested in other investment companies, provided, however,
that until this Agreement is terminated pursuant to Article IX, the Company
shall promote the Designated Portfolios on the same overall basis as other
funding vehicles available under the Contracts.
(b) The Company shall not, without prior notice to the Fund (unless otherwise
required by applicable law), take any action to operate the Account as a
management investment company under the 1940 Act.
(c) The Company shall not, without prior notice to the Fund (unless otherwise
required by applicable law), induce or encourage Contract owners to change or
modify the Fund or remove or otherwise change the Fund's distributor or
investment adviser.
(d) The Company shall not, without prior notice to the Fund, induce or
encourage Contract owners to vote on any matter submitted for consideration by
the shareholders of the Fund in a manner other than as recommended by the Board
of Trustees of the Fund.
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1.8. The Company acknowledges that, pursuant to Form 24F-2, the Fund is not
required to pay fees to the SEC for registration of its shares under the 1933
Act with respect to its shares issued to an Account that is a unit investment
trust that offers interests that are registered under the 1933 Act and on which
a registration fee has been or will be paid to the SEC (a "Registered Account").
The Company agrees to provide the Fund or its agent each year within 60 days of
the end of the Fund's fiscal year, or when reasonably requested by the Fund,
information as to the number of shares purchased by a Registered Account and any
other Account the interests of which are not registered under the ▇▇▇▇ ▇▇▇. The
Company acknowledges that the Fund intends to rely on the information so
provided.
1.9. If adjustments are required to correct an error in the computation of the
net asset value of a class of a Fund's shares, in the distribution rate for a
Fund's shares, or otherwise, the Fund or Underwriter (or their designee)
promptly shall notify the Company upon discovering the need for such adjustments
and shall implement corrections for such errors in accordance with the Funds'
error correction procedures. The Company agrees to comply with reasonable
requests made by the Fund or Underwriter (or their designee) in connection with
its efforts to resolve such errors.
ARTICLE II. REPRESENTATIONS AND WARRANTIES
2.1. The Fund represents and warrants that (i) the Fund is lawfully organized
and validly existing under the laws of the State of Delaware, (ii) the Fund is
and shall remain registered under the 1940 Act, (iii) Designated Portfolio
shares sold pursuant to this Agreement are registered under the 1933 Act (to the
extent required by that Act) and are duly authorized for issuance, (iv) the Fund
shall amend the registration statement for the shares of the Designated
Portfolios under the 1933 Act and the 1940 Act from time to time as required in
order to effect the continuous offering of such shares, and (v) the Board has
elected for each Designated Portfolio to be taxed as a Regulated Investment
Company under Subchapter M of the Internal Revenue Code of 1986, as amended (the
"Code"). The Fund makes no representations or warranties as to whether any
aspect of the Designated Portfolios' operations, including, but not limited to,
investment policies, fees and expenses, complies with the insurance laws and
other applicable laws of the various states. The Company agrees to promptly
notify the Fund of any investment restrictions imposed by state insurance law
applicable to the Fund or a Designated Portfolio. The Fund shall not be
responsible, and the Company shall take full responsibility, for determining any
jurisdiction in which any qualification or registration of Fund shares or the
Fund by the Fund may be required in connection with the sale of the Contracts or
the indirect interest of any Contract in any shares of the Fund and shall advise
the Fund at such time and in such manner as is necessary to permit the Fund to
comply.
2.2. The Underwriter represents and warrants that shares of the Designated
Portfolios (i) shall be offered and sold in compliance in all material respects
with applicable federal securities laws, (ii) are offered and sold only to
Participating Insurance Companies and their separate accounts and to persons or
plans that communicate to the Fund that they qualify to purchase shares of the
Designated Portfolios under Section 817(h) of the Code and the regulations
thereunder without impairing the ability of the Account to consider the
portfolio investments of the Designated Portfolios as constituting investments
of the Account for the purpose of satisfying the diversification requirements of
Section 817(h) ("Qualified Persons"), and (iii) are registered and qualified for
sale in accordance with the laws of the various states to the extent required by
applicable law.
2.3. Subject to Company's representations and warranties in Sections 2.5 and
2.6, the Fund represents and warrants that it will invest the assets of each
Designated Portfolio in such a manner as to ensure that the Contracts will be
treated as annuity or life insurance contracts, whichever is appropriate, under
the Code and the regulations issued thereunder (or any successor provisions).
Without limiting the scope of the foregoing, the Fund represents and warrants
that each Designated Portfolio has complied and will continue to comply with
Section 817(h) of the Code and Treasury Regulation Section 1.817-5, and any
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Treasury interpretations thereof, relating to the diversification requirements
for variable annuity, endowment, or life insurance contracts, and any amendments
or other modifications or successor provisions to such Section or Regulation.
The Fund will make every reasonable effort (a) to notify the Company immediately
upon having a reasonable basis for believing that a breach of this Section 2.3
has occurred, and (b) in the event of such a breach, to adequately diversify the
Designated Portfolio so as to achieve compliance within the grace period
afforded by Treasury Regulation Section 1.817-5.
2.4. The Fund represents and warrants that each Designated Portfolio is or will
be qualified as a Regulated Investment Company under Subchapter M of the Code,
that the Fund will make every reasonable effort to maintain such qualification
(under Subchapter M or any successor or similar provisions) and that the Fund
will notify the Company immediately upon having a reasonable basis for believing
that a Designated Portfolio has ceased to so qualify or that it might not so
qualify in the future.
2.5. The Company represents and warrants that the Contracts (a) are, or prior
to issuance will be, registered under the 1933 Act, or (b) are not registered
because they are properly exempt from registration under the 1933 Act or will be
offered exclusively in transactions that are properly exempt from registration
under the 1933 Act. The Company also represents and warrants that it is an
insurance company duly organized and in good standing under applicable law, that
it has legally and validly established the Account prior to any issuance or sale
thereof as a segregated asset account under Connecticut Insurance laws, and that
it (a) has registered or, prior to any issuance or sale of the Contracts, will
register the Account as a unit investment trust in accordance with the
provisions of the 1940 Act to serve as a segregated investment account for the
Contracts, or alternatively (b) has not registered the Account in proper
reliance upon an exclusion from registration under the 1940 Act. The Company
further represents and warrants that (i) the Contracts will be issued and sold
in compliance in all material respects with all applicable federal securities
and state securities and insurance laws, (ii) the sale of the Contracts shall
comply in all material respects with state insurance suitability requirements;
(iii) the information provided pursuant to Section 1.8 shall be accurate in all
material respects; and (iv) it and the Account are Qualified Persons. The
Company shall register and qualify the Contracts or interests therein as
securities in accordance with the laws of the various states only if and to the
extent required by applicable law.
2.6. The Company represents and warrants that the Contracts are currently, and
at the time of issuance shall be, treated as life insurance or annuity
contracts, under applicable provisions of the Code, and that it will make every
reasonable effort to maintain such treatment, and that it will notify the Fund
and the Underwriter immediately upon having a reasonable basis for believing the
Contracts have ceased to be so treated or that they might not be so treated in
the future. In addition, the Company represents and warrants that each of its
Accounts is a "segregated asset account" and that interests in the Accounts are
offered exclusively through the purchase of or transfer into a "variable
contract" within the meaning of such terms under Section 817 of the Code and the
regulations thereunder. Company will use every reasonable effort to continue to
meet such definitional requirements, and it will notify the Fund and the
Underwriter immediately upon having a reasonable basis for believing that such
requirements have ceased to be met or that they might not be met in the future.
2.7. The Underwriter represents and warrants that it is a member in good
standing of the FINRA and is registered as a broker-dealer with the SEC.
2.8. The Fund and the Underwriter represent and warrant that all of their
trustees, directors, officers, employees, investment advisers, and other
individuals or entities dealing with the money and/or securities of the Fund are
and shall continue to be at all times covered by a blanket fidelity bond or
similar coverage for the benefit of the Fund in an amount not less than the
minimum coverage as required currently by Rule 17g-1 of the 1940 Act or related
provisions as may be promulgated from time to time.
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The aforesaid bond shall include coverage for larceny and embezzlement and shall
be issued by a reputable bonding company.
2.9. The Company represents and warrants that all of its directors, officers,
employees, and other individuals/entities employed or controlled by the Company
dealing with the money and/or securities of the Account are covered by a blanket
fidelity bond or similar coverage for the benefit of the Account, in an amount
not less than $5 million. The aforesaid bond includes coverage for larceny and
embezzlement and is issued by a reputable bonding company. The Company agrees to
hold for the benefit of the Fund and to pay to the Fund any amounts lost from
larceny, embezzlement or other events covered by the aforesaid bond to the
extent such amounts properly belong to the Fund pursuant to the terms of this
Agreement. The Company agrees to make all reasonable efforts to see that this
bond or another bond containing these provisions is always in effect, and agrees
to notify the Fund and the Underwriter in the event that such coverage no longer
applies.
2.10. The Company represents and warrants that it shall comply with any
applicable privacy and notice provisions of 15 U.S.C. Section Section 6801-6827
and any applicable regulations promulgated thereunder (including but not limited
to 17 C.F.R. Part 248), and any other applicable federal and state privacy law,
as they may be amended from time to time.
2.11. The Company represents and warrants that it has in place an anti-money
laundering program ("AML program") that does now and will continue to comply
with applicable laws and regulations, including the relevant provisions of the
USA PATRIOT Act (Pub. L. No. 107-56 (2001)) and the regulations issued
thereunder (the "Patriot Act"). The Company hereby certifies that it has
established and maintains an AML program that includes written policies,
procedures and internal controls reasonably designed to identify its Contract
owners and has undertaken appropriate due diligence efforts to "know its
customers" in accordance with all applicable anti-money laundering regulations
in its jurisdiction including, where applicable, the Patriot Act. The Company
further confirms that it will monitor for suspicious activity in accordance with
the requirements of the Patriot Act. In addition, the Company represents and
warrants that it has adopted and implemented policies and procedures reasonably
designed to achieve compliance with the applicable requirements administered by
the Office of Foreign Assets Control of the U.S. Department of the Treasury. To
the extent permitted by applicable law, the Company agrees to provide the
Underwriter with such information as it may reasonably request, including but
not limited to the filling out of questionnaires, attestations and other
documents, to enable the Underwriter to fulfill its obligations under applicable
law, and, upon its request, to file a notice pursuant to Section 314 of the
Patriot Act and the implementing regulations related thereto to permit the
voluntary sharing of information between the parties hereto. Upon filing such a
notice, the Company agrees to forward a copy to the Underwriter, and further
agrees to comply with all requirements under the Patriot Act and implementing
regulations concerning the use, disclosure, and security of any information that
is shared to the extent permitted by applicable law.
2.12. The Company represents and warrants that (a) the Company has, and will
maintain, policies and procedures reasonably designed to monitor and prevent
market timing or excessive trading activity by its customers and (b) the Company
will provide the Fund or its agent with assurances regarding the compliance of
its handling of orders with respect to shares of the Designated Portfolios with
the requirements of Rule 22c-1 under the 1940 Act, regulatory interpretations
thereof, and the Fund's market timing and excessive trading policies upon
reasonable request. Additionally, the Company shall comply with provisions of
the statutory prospectus and SAI of the Fund, and with applicable federal and
state securities laws. Among other things, and without limitation of the
foregoing, the Company shall be responsible for reasonably assuring that: (a)
only orders to purchase, redeem or exchange Portfolio shares received by the
Company or any Indirect Intermediary (as defined below) prior to the Valuation
Time (as defined below) shall be submitted directly or indirectly by the Company
to the Fund or its transfer agent
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or other applicable agent for receipt of a price based on the net asset value
per share calculated for that day in accordance with Rule 22c-1 under the 1940
Act (orders to purchase, redeem or exchange Portfolio shares received by the
Company subsequent to the Valuation Time on any given day shall receive a price
based on the next determined net asset value per share in accordance with Rule
22c-1 under the 1940 Act.): and (b) the Company shall cause to be imposed and/or
waived applicable redemption fees, if any, only in accordance with the
Portfolio's then current statutory prospectus or SAI and/or as instructed by the
Underwriter. The Company further agrees to make reasonable efforts to assist the
Fund and its service providers (including but not limited to the Underwriter) to
detect, prevent and report market timing or excessive short-term trading of
Portfolio shares. To the extent the Company has actual knowledge of violations
of Fund policies (as set forth in the then current statutory prospectus or SAI)
regarding (i) the timing of purchase, redemption or exchange orders and pricing
of Portfolio shares, (ii) market timing or excessive short-term trading, or
(iii) the imposition of redemption fees, if any, the Company agrees to report
such known violations to the Underwriter. For purposes of this provision, the
term "Valuation Time" refers to the time as of which the shares of a Portfolio
are valued on each business day, currently the close of regular trading on the
New York Stock Exchange (normally, 4:00 p.m., Eastern Time) on each day that the
New York Stock Exchange is open for business.
2.13. That certain Rule 22c-2 Shareholder Information Agreement by and among
the Company and the Underwriter effective of even date herewith (the "22c-2
Agreement") (formed pursuant to that certain Novation and Amendment to
Shareholder Information Agreement dated of even date herewith which novated and
amended that certain Rule 22c-2 Shareholder Information Agreement dated March
13, 2007 by and among the Company and Allianz Global Investors Distributors
LLC), is incorporated by reference herein; provided that to the extent of any
conflict between the 22c-2 Agreement and this Agreement the terms of the 22c-2
Agreement shall control with respect to the substance thereof.
ARTICLE III. PROSPECTUSES AND PROXY STATEMENTS; VOTING
3.1. Subject to Section 6.1, the Underwriter shall provide the Company with as
many copies of the Fund's current statutory prospectuses as the Company may
reasonably request.
3.2. The Underwriter (or the Fund) shall provide electronic copies of the
current statutory prospectus, including any supplements, SAI, including any
supplements, and most recent annual and semi-annual reports to shareholders
under Rule 30e-1 of the 1940 Act ("Fund Documents").
3.3. Within three (3) business days of receiving a request for a paper copy or
an electronic copy of any Fund Documents, the Company shall send a paper copy or
electronic copy, respectively, of any requested Fund Document to any person
requesting such copy at no cost to the Contract owner and by U.S. first class
mail or other reasonably prompt means or by email for electronic requests.
3.4. The Fund shall provide the Company with information regarding the Fund's
expenses, which information may include a table of fees and related narrative
disclosure for use in any prospectus or other descriptive document relating to a
Contract. The Company agrees that it will use such information substantively in
the form provided. The Company shall provide prior written notice of any
proposed modification of such information, which notice will describe in detail
the manner in which the Company proposes to modify the information, and agrees
that it may not modify such information in any material way without the prior
consent of the Fund.
3.5. The Fund shall provide the Company with copies of its proxy material and
other communications to shareholders in such quantity as the Company shall
reasonably require for distributing to Contract owners. The Company shall
deliver such documents to Contract owners in accordance with applicable laws.
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3.6. The Company shall:
(a) solicit voting instructions from Contract owners;
(b) vote the Fund shares in accordance with instructions received from
Contract owners; and
(c) vote Fund shares for which no instructions have been received in the
same proportion as Fund shares of such portfolio for which
instructions have been received in accordance with its echo voting
procedures, as the same may be amended from time to time,
so long as and to the extent that the SEC continues to interpret the 1940 Act to
require pass-through voting privileges for variable contract owners or to the
extent otherwise required by law. The Company will vote Fund shares held in any
segregated asset account in the same proportion as Fund shares of such portfolio
for which voting instructions have been received from Contract owners in
accordance with its echo voting procedures, as the same may be amended from time
to time.
3.7. Participating Insurance Companies shall be responsible for assuring that
each of their separate accounts participating in a Designated Portfolio
calculates voting privileges as required by the Shared Funding Executive Order
and consistent with any reasonable standards that the Fund may reasonably adopt
and provide in writing.
3.8. The expenses and fees related to the foregoing provisions of this Article
III shall be allocated as set forth in SCHEDULE B hereof.
ARTICLE IV. SALES MATERIAL AND INFORMATION
4.1. The Company is hereby granted a non-exclusive, royalty-free, worldwide
license to use, print, broadcast and otherwise display in any print or
electronic medium the Fund's, Distributor's and Adviser's service marks, trade
names and logos in sales literature or other promotional material created and
published by the Company with respect to Contracts, provided such use in print,
broadcast or other display conforms to such written guidelines, if any, provided
by the Fund or Distributor.
4.2. The Company shall furnish, or shall cause to be furnished, to the Fund or
its designee, each piece of sales literature or other promotional material that
the Company develops and in which the Fund (or a Designated Portfolio thereof)
or the Adviser or the Underwriter is named. No such material shall be used until
approved by the Fund or its designee, and the Fund will use its best efforts for
it or its designee to review such sales literature or promotional material
within ten Business Days after receipt of such material; provided, however, that
the Company may begin using such material if the Fund or its designee fails to
review or respond within such period. The Fund or its designee reserves the
right to reasonably object to the continued use of any such sales literature or
other promotional material in which the Fund (or a Designated Portfolio thereof)
or the Adviser or the Underwriter is named, and no such material shall be used
if the Fund or its designee so object.
4.3. The Company shall not give any information or make any representations or
statements on behalf of the Fund or concerning the Fund or the Adviser or the
Underwriter in connection with the sale of the Contracts other than the
information or representations contained in the registration statement or
statutory prospectus or SAI for the Fund shares, as such registration statement
and statutory prospectus or SAI may be amended or supplemented from time to
time, or in reports or proxy statements for the Fund, or in sales literature or
other promotional material approved by the Fund or its designee or by the
Underwriter, except with the permission of the Fund or the Underwriter or the
designee of either. The
9
Company shall comply with all applicable laws, including Rule 498 under the 1933
Act, when composing, compiling and delivering sales literature or other
promotional material.
4.4. The Fund and the Underwriter, or their designee, shall furnish, or cause
to be furnished, to the Company, each piece of sales literature or other
promotional material that it develops and in which the Company, and/or its
Account, is named. No such material shall be used until approved by the Company,
and the Company will use its best efforts to review such sales literature or
promotional material within ten Business Days after receipt of such material;
provided, however, the Fund and the Underwriter may begin using such material if
the Company or its designee fails to review or respond within such period. The
Company reserves the right to reasonably object to the continued use of any such
sales literature or other promotional material in which the Company and/or its
Account is named, and no such material shall be used if the Company so objects.
4.5. The Fund and the Underwriter shall not give any information or make any
representations on behalf of the Company or concerning the Company, the Account,
or the Contracts other than the information or representations contained in a
registration statement, prospectus (which shall include an offering memorandum,
if any, if the Contracts issued by the Company or interests therein are not
registered under the 1933 Act), or SAI for the Contracts, as such registration
statement, prospectus, or SAI may be amended or supplemented from time to time,
or in published reports for the Account which are in the public domain or
approved by the Company for distribution to Contract owners, or in sales
literature or other promotional material approved by the Company or its
designee, except with the prior permission of the Company.
4.6. The Fund will provide to the Company at least one complete copy of all
registration statements, statutory prospectuses, SAIs, reports, proxy
statements, sales literature and other promotional materials, applications for
exemptions, requests for no-action letters, and all amendments to any of the
above, that relate to the Fund or its shares, promptly after the filing of such
document(s) with the SEC or other regulatory authorities. The Company shall not
alter any of such documents provided by the Fund without the prior written
consent of the Fund or Underwriter.
4.7. The Company shall provide to the Fund and the Underwriter any material
complaints received from the Contract owners pertaining to the Fund or the
Designated Portfolio.
4.8. For purposes of this Article IV, the phrase "sales literature and other
promotional materials" includes, but is not limited to, any of the following
that refer to the Fund or any affiliate of the Fund: advertisements (such as
material published, or designed for use in a newspaper, magazine, or other
periodical, radio, television, telephone, Internet, or tape recording, videotape
display, signs, video streams, computerized media, websites or other public
media), sales literature or other promotional material (i.e., any written
communication distributed or made generally available to key firms, customers or
the public, including brochures, circulars, pitch books, information provided on
a website, research reports, market letters, form letters, seminar texts,
reprints or excerpts of any other advertisement, sale literature or other
promotional material), educational or training materials or other communications
distributed or made generally available to some or all agents, wholesalers or
employees.
ARTICLE V. FEES AND EXPENSES
5.1. Except as otherwise provided herein or within another agreement between
the parties and/or SCHEDULE B attached hereto and made a part hereof no party to
this Agreement shall pay any fee or other compensation to any other party to
this Agreement. Fxcept as otherwise provided herein, all expenses incident to
performance by a party under this Agreement shall be paid by such party.
10
5.2. All expenses incident to performance by the Fund under this Agreement
shall be paid by the Fund. The Fund shall see to it that all its shares are
registered and authorized for issuance in accordance with applicable federal law
and, if and to the extent deemed advisable by the Fund, in accordance with
applicable state laws prior to their sale. The Fund shall bear the expenses for
the cost of registration and qualification of the Fund's shares, preparation and
filing of the Fund's statutory prospectuses and registration statement, proxy
materials and reports, setting the statutory prospectuses in type, setting in
type and printing the proxy materials and reports to shareholders, the
preparation of all statements and notices required by any federal or state law,
and all taxes on the issuance or transfer of the Fund's shares.
5.3. The Company shall bear the expenses of distributing the Fund's statutory
prospectuses to owners of Contracts issued by the Company and of distributing
the Fund's proxy materials and reports to such Contract owners.
ARTICLE VI. POTENTIAL CONFLICTS
6.1. The parties to this Agreement agree that the conditions or undertakings
required by the Mixed and Shared Funding Exemptive Order that may be imposed on
the Company, the Fund and/or the Underwriter by virtue of such order by the SEC:
(i) shall apply only upon the sale of shares of the Designated Portfolios to
variable life insurance separate accounts (and then only to the extent required
under the 1940 Act); (ii) shall apply and be incorporated herein by reference
only if any of the Company, any Participating Insurance Company, the Fund or the
Adviser relies on the exemptions from Sections 9(a), 13(a), 15(a) or 15(b) of
the 1940 Act granted by the Mixed and Shared Funding Exemptive Order; (iii) will
be incorporated herein by reference; and (iv) such parties agree to comply with
such conditions and undertakings to the extent applicable to each such party
notwithstanding any provision of this Agreement to the contrary.
6.2. If and to the extent that Rule 6e-2 and Rule 6e-3(T) are amended, or Rule
6e-3 is adopted, to provide exemptive relief from any provision of the 1940 Act
or the rules promulgated thereunder with respect to mixed or shared funding (as
defined in the Mixed and Shared Funding Exemptive Order) on terms and conditions
materially different from those contained in the Mixed and Shared Funding
Exemptive Order, then (a) the parties to this Agreement shall take such steps as
may be necessary to comply with Rules 6e-2 and 6e-3(T), as amended, and Rule
6e-3, as adopted, to the extent such rules are applicable; and (b) Sections 3.6
and 3.7 of this Agreement shall continue in effect only to the extent that terms
and conditions substantially identical to such Sections are contained in such
Rule(s) as so amended or adopted.
ARTICLE VII. INDEMNIFICATION
7.1. INDEMNIFICATION BY THE COMPANY
(a) The Company agrees to indemnify and hold harmless the Fund and the
Underwriter and each of its trustees/directors and officers, and
each person, if any, who controls the Fund or Underwriter within the
meaning of Section 15 of the 1933 Act or who is under common control
with the Underwriter (collectively, the "Indemnified Parties" for
purposes of this Section 7.1) against any and all losses, claims,
damages, liabilities (including amounts paid in settlement with the
written consent of the Company) or litigation (including reasonable
legal and other reasonable expenses), to which the Indemnified
Parties may become subject under any statute or regulation, at
common law or otherwise, insofar as such losses, claims, damages,
liabilities or expenses (or actions in respect thereof) or
settlements:
11
(i) arise out of or are based upon any untrue statement or
alleged untrue statements of any material fact contained in
the registration statement, prospectus (which shall include a
written description of a Contract that is not registered
under the 1933 Act), or SAI for the Contracts or contained in
the Contracts or sales literature for the Contracts (or any
amendment or supplement to any of the foregoing), or arise
out of or are based upon the omission or the alleged omission
to state therein a material fact required to be stated
therein or necessary to make the statements therein not
misleading, provided that this agreement to indemnify shall
not apply as to any Indemnified Party if such statement or
omission or such alleged statement or omission was made in
reliance upon and in conformity with information furnished to
the Company by or on behalf of the Fund for use in the
registration statement, prospectus or SAI for the Contracts
or in the Contracts or sales literature (or any amendment or
supplement) or otherwise for use in connection with the sale
of the Contracts or Fund shares; or
(ii) arise out of or as a result of statements or representations
(other than statements or representations contained in the
registration statement, prospectus, SAI, or sales literature
of the Fund not supplied by the Company or persons under its
control) or wrongful conduct of the Company or its agents or
persons under the Company's authorization or control, with
respect to the sale or distribution of the Contracts or Fund
Shares; or
(iii) arise out of any untrue statement or alleged untrue
statement of a material fact contained in a registration
statement, prospectus, SAI, or sales literature of the Fund
or any amendment thereof or supplement thereto or the
omission or alleged omission to state therein a material
fact required to be stated therein or necessary to make the
statements therein not misleading if such a statement or
omission was made in reliance upon information furnished to
the Fund by or on behalf of the Company; or
(iv) arise as a result of any material failure by the Company to
provide the services and furnish the materials under the
terms of this Agreement (including a failure, whether
unintentional or in good faith or otherwise, to comply with
the qualification requirements specified in Section 2.6 of
this Agreement); or
(v) arise out of or result from any material breach of any
representation and/or warranty made by the Company in this
Agreement or arise out of or result from any other material
breach of this Agreement by the Company;
as limited by and in accordance with the provisions of Sections 7.1(b) and
7.1(c) hereof.
(b) The Company shall not be liable under this indemnification provision
with respect to any losses, claims, damages, liabilities or
litigation to which an Indemnified Party would otherwise be subject
by reason of such Indemnified Party's willful misfeasance, fraud, 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 its obligations or duties under this Agreement.
(c) The Company shall not be liable under this indemnification provision
with respect to any claim made against an Indemnified Party unless
such Indemnified Party shall have notified the Company in writing
within a reasonable time after the summons or other first legal
process giving 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
12
on any designated agent), but failure to notify the Company of any
such claim shall not relieve the Company from any liability which it
may have to the Indemnified Party against whom such action is brought
otherwise than on account of this indemnification provision. In case
any such action is brought against an Indemnified Party, the Company
shall be entitled to participate, at its own expense, in the defense
of such action. The Company also shall be entitled to assume the
defense thereof, with counsel satisfactory to the party named in the
action. After notice from the Company to such party of the Company's
election to assume the defense thereof, the Indemnified Party shall
bear the fees and expenses of any additional counsel retained by it,
and the Company will not be liable to such party under this Agreement
for any legal or other expenses subsequently incurred by such party
independently in connection with the defense thereof other than
reasonable costs of investigation.
(d) The Indemnified Parties will promptly notify the Company of the
commencement of any litigation or proceedings against them in
connection with the issuance or sale of the Fund shares or the
Contracts or the operation of the Fund.
7.2. INDEMNIFICATION BY THE UNDERWRITER
(a) The Underwriter agrees to indemnify and hold harmless the Company
and each of its directors and officers and each person, if any, who
controls the Company within the meaning of Section 15 of the 1933
Act (collectively, the "Indemnified Parties" for purposes of this
Section 7.2) against any and all losses, claims, damages,
liabilities (including amounts paid in settlement with the written
consent of the Underwriter) or litigation (including legal and other
expenses) to which the Indemnified Parties may become subject under
any statute or regulation, at common law or otherwise, insofar as
such losses, claims, damages, liabilities or expenses (or actions in
respect thereof) or settlements:
(i) arise out of or are based upon any untrue statement or alleged
untrue statement of any material fact contained in the
registration statement or prospectus or SAI or sales literature of
the Fund (or any amendment or supplement to any of the foregoing),
or arise out of or are based upon the omission or the alleged
omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not
misleading, provided that this agreement to indemnify shall not
apply as to any Indemnified Party if such statement or omission or
such alleged statement or omission was made in reliance upon and
in conformity with information furnished to the Underwriter or
Fund by or on behalf of the Company for use in the registration
statement, prospectus or SAI for the Fund or in sales literature
(or any amendment or supplement) or otherwise for use in
connection with the sale of the Contracts or Fund shares; or
(ii) arise out of or as a result of statements or representations
(other than statements or representations contained in the
registration statement, prospectus, SAI or sales literature for
the Contracts not supplied by the Underwriter or persons under its
control) or wrongful conduct of the Fund or Underwriter or persons
under their control, with respect to the sale or distribution of
the Contracts or Fund shares: or
(iii) arise out of any untrue statement or alleged untrue statement of
a material fact contained in a registration statement.
prospectus, SAI or sales literature covering the Contracts, or
any amendment thereof or supplement thereto, or the omission or
alleged omission to state therein a material fact required to be
stated therein or necessary to
13
make the statement or statements therein not misleading, if such
statement or omission was made in reliance upon information
furnished to the Company by or on behalf of the Fund or the
Underwriter; or
(iv) arise as a result of any failure by the Fund or the Underwriter to
provide the services and furnish the materials under the terms of
this Agreement (including a failure of the Fund, whether
unintentional or in good faith or otherwise, to comply with the
diversification and other qualification requirements specified in
Sections 2.3 and 2.4 of this Agreement); or
(v) arise out of or result from any material breach of any
representation and/or warranty made by the Underwriter in this
Agreement or arise out of or result from any other material breach
of this Agreement by the Underwriter; as limited by and in
accordance with the provisions of Sections 7.2(b) and 7.2(c)
hereof.
(b) The Underwriter 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, fraud, bad
faith, or gross negligence in the performance of such Indemnified
Party's duties or by reason of such Indemnified Party's reckless
disregard of obligations and duties under this Agreement or to the
Company or the Account, whichever is applicable.
(c) The Underwriter 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
Underwriter 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 Underwriter of any
such claim shall not relieve the Underwriter 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 Party, the Underwriter will be entitled to participate,
at its own expense, in the defense thereof. The Underwriter also
shall be entitled to assume the defense thereof, with counsel
satisfactory to the party named in the action. After notice from the
Underwriter to such party of the Underwriter's election to assume
the defense thereof, the Indemnified Party shall bear the fees and
expenses of any additional counsel retained by it, and the
Underwriter will not be liable to such party under this Agreement
for any legal or other expenses subsequently incurred by such party
independently in connection with the defense thereof other than
reasonable costs of investigation.
(d) The Company agrees promptly to notify the Underwriter of the
commencement of any litigation or proceedings against it or any of
its officers or directors in connection with the issuance or sale of
the Contracts or the operation of the Account.
7.3. INDEMNIFICATION BY THE FUND
(a) The Fund agrees to indemnify and hold harmless the Company and each
of its directors and officers and each person, if any, who controls
the Company within the meaning of Section 15 of the 1933 Act
(collectively, the "Indemnified Parties" for purposes of this
Section 7.3) against any and all losses, claims, expenses, damages,
liabilities (including amounts paid in settlement with the written
consent of the Fund) or litigation (including
14
legal and other expenses) to which the Indemnified Parties may be
required to pay or may become subject under any statute or regulation,
at common law or otherwise, insofar as such losses, claims, expenses,
damages, liabilities or expenses (or actions in respect thereof) or
settlements, are related to the operations of the Fund and:
(i) arise as a result of any failure by the Fund to provide the
services and furnish the materials under the terms of this
Agreement (including a failure, whether unintentional or in good
faith or otherwise, to comply with the diversification and other
qualification requirements specified in Section 2.3 and 2.4 of
this Agreement); or
(ii) arise out of or result from any material breach of any
representation and/or warranty made by the Fund in this Agreement
or arise out of or result from any other material breach of this
Agreement by the Fund;
as limited by and in accordance with the provisions of Sections 7.3(b) and
7.3(c) hereof. The parties acknowledge that the Fund's indemnification
obligations under this Section 7.3 are subject to applicable law.
(b) The Fund 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, fraud, bad
faith, or gross negligence in the performance of such Indemnified
Party's duties or by reason of such Indemnified Party's reckless
disregard of obligations and duties under this Agreement or to the
Company, the Fund, the Underwriter or the Account, whichever is
applicable.
(c) The Fund shall not be liable under this indemnification provision
with respect to any claim made against an Indemnified Party unless
such Indemnified Party shall have notified the Fund in writing
within a reasonable time after the summons or other first legal
process giving information of the nature of the claim shall have
been served upon such Indemnified Party (or after such Indemnified
Party shall have received notice of such service on any designated
agent), but failure to notify the Fund of any such claim shall not
relieve the Fund 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 Fund will be
entitled to participate, at its own expense, in the defense thereof.
The Fund also shall be entitled to assume the defense thereof, with
counsel satisfactory to the party named in the action. After notice
from the Fund to such party of the Fund's election to assume the
defense thereof, the Indemnified Party shall bear the fees and
expenses of any additional counsel retained by it, and the Fund will
not be liable to such party under this Agreement for any legal or
other expenses subsequently incurred by such party independently in
connection with the defense thereof other than reasonable costs of
investigation.
(d) The Company and the Underwriter agree promptly to notify the Fund of
the commencement of any litigation or proceeding against it or any of
its respective officers or directors in connection with the
Agreement, the issuance or sale of the Contracts, the operation of
the Account, or the sale or acquisition of shares of the Fund.
15
ARTICLE VIII. APPLICABLE LAW
8.1. This Agreement shall be construed and the provisions hereof interpreted
under and in accordance with the laws of the State of California.
8.2. This Agreement 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
(including, but not limited to, any Mixed and Shared Funding Exemptive Order)
and the terms hereof shall be interpreted and construed in accordance therewith.
If, in the future, the Mixed and Shared Funding Exemptive Order should no longer
be necessary under applicable law, then Article VI shall no longer apply.
ARTICLE IX. TERMINATION
9.1. This Agreement shall continue in full force and effect until the first to
occur of:
(a) termination by any party, for any reason with respect to some or all
Designated Portfolios, by six (6) months advance written notice
delivered to the other parties; or
(b) termination by the Company by written notice to the Fund and the
Underwriter based upon the Company's determination that shares of the
Fund are not reasonably available to meet the requirements of the
Contracts; or
(c) termination by the Company by written notice to the Fund and the
Underwriter in the event any of the Designated Portfolio'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 media of the Contracts issued or
to be issued by the Company; or
(d) termination by the Company by written notice to the Fund and the
Underwriter with respect to any Designated Portfolio in the event
that such Portfolio ceases to qualify as a Regulated Investment
Company under Subchapter M or fails to comply with the Section 817(h)
diversification requirements specified in Section 2.4 hereof, or if
the Company reasonably believes that such Portfolio may fail to so
qualify or comply; or
(e) termination by the Fund or Underwriter by written notice to the
Company in the event that the Contracts fail to meet the
qualifications specified in Section 2.6 hereof; or
(f) termination by the Company by written notice to the Fund and the
Underwriter, if the Company shall determine, in its sole judgment
exercised in good faith, that the Fund, Adviser, or the Underwriter
has suffered a material adverse change in its business, operations,
financial condition or prospects since the date of this Agreement or
is the subject of material adverse publicity; or
(g) termination by the Company upon any substitution of the shares of
another investment company or series thereof for shares of a
Designated Portfolio of the Fund in accordance with the terms of the
Contracts, provided that the Company has given at least 45 days
prior written notice to the Fund and Underwriter of the date of
substitution; or
(h) termination by the Fund if the Board has decided to (i) refuse to
sell shares of any Designated Portfolio to the Company and/or any of
its Accounts; (ii) suspend or terminate the offering of shares of any
Designated Portfolio; or (iii) dissolve, reorganize, liquidate,
16
merge or sell all assets of the Fund or any Designated Portfolio,
subject to the provisions of Section 1.1; or
(i) termination by any party in the event that the Fund's Board of
Trustees determines that a material irreconcilable conflict exists
as referred to in Mixed and Shared Funding Exemptive Order and the
conditions thereof incorporated herein by reference in Article VI.
9.2. (a) Notwithstanding any termination of this Agreement, and except as
provided in Section 9.2(b), the Fund and the Underwriter shall, at the option of
the Company, continue, until the one year anniversary from the date of
termination, and from year to year thereafter if deemed appropriate by the Fund
and the Underwriter, to make available additional shares of the Designated
Portfolios pursuant to the terms and conditions of this Agreement, for all
Contracts in effect on the effective date of termination of this Agreement
(hereinafter referred to as "Existing Contracts"). Specifically, based on
instructions from the owners of the Existing Contracts, the Accounts shall be
permitted to reallocate investments in the Designated Portfolios of the Fund and
redeem investments in the Designated Portfolios, and shall be permitted to
invest in the Designated Portfolios in the event that owners of the Existing
Contracts make additional premium payments under the Existing Contracts.
The Company agrees, promptly after any termination of this Agreement, to take
all steps necessary to redeem the investment of the Accounts in the Designated
Portfolios within one year from the date of termination of the Agreement as
provided in Article IX. Such steps shall include, but not be limited to using
its best efforts to seek an order pursuant to Section 26(c) of the 1940 Act to
permit the substitution of other securities for the shares of the Designated
Portfolios. The Fund may, in its discretion, permit the Accounts to continue to
invest in the Designated Portfolios beyond such one year anniversary for an
additional year beginning on the first annual anniversary of the date of
termination, and from year to year thereafter; provided that the Fund agrees in
writing to permit the Accounts to continue to invest in the Designated
Portfolios at the beginning of any such year.
(b) In the event (i) the Agreement is terminated pursuant to Sections 9.1(e) or
9.1(i), at the option of the Fund or the Underwriter; or (ii) the one year
anniversary of the termination of the Agreement is reached or, after waiver as
provided in Section 9.2(a), such subsequent anniversary is reached (each of (i)
and (ii) referred to as a "triggering event" and the date of termination as
provided in (i) or the date of such anniversary as provided in (ii) referred to
as the "request date"), the parties agree that such triggering event shall be
considered as a request for immediate redemption of shares of the Designated
Portfolios held by the Accounts, received by the Fund and its agents as of the
request date, and the Fund agrees to process such redemption request in
accordance with the 1940 Act and the regulations thereunder and the Fund's
registration statement.
(c) The parties agree that this Section 9.2 shall not apply to any terminations
under Article VI and the effect of such Article VI terminations shall be
governed by Article VI of this Agreement. The parties further agree that, to the
extent that all or a portion of the assets of the Accounts continue to be
invested in the Fund or any Designated Portfolio of the Fund, Articles I, II,
VI, VII and VIII will remain in effect after termination.
9.3. Notwithstanding any termination of this Agreement, each party's obligation
under Article VII to indemnify the other parties shall survive.
17
ARTICLE X. NOTICES
Any notice shall be sufficiently given when sent by registered or certified mail
to the other party at the address of such party set forth below or at such other
address as such party may from time to time specify in writing to the other
party.
If to the Fund: PIMCO Equity Series VIT
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: Legal Department
With a copy to:
Pacific Investment Management Company LLC
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: Legal Department
If to the Company: The Hartford
▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: Legal Department
If to Underwriter: PIMCO Investments LLC
▇▇▇▇ ▇▇▇▇▇▇ ▇▇ ▇▇▇ ▇▇▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
ARTICLE XI. MISCELLANEOUS
11.1. All persons dealing with the Fund must look solely to the property of the
Fund, and in the case of a series company, the respective applicable Designated
Portfolios listed on Schedule A hereto as though each such Designated Portfolio
had separately contracted with the Company and the Underwriter for the
enforcement of any claims against the Fund. The parties agree that neither the
Board, officers, agents nor shareholders of the Fund assume any personal
liability or responsibility for obligations entered into by or on behalf of the
Fund.
11.2. Any use or disclosure of nonpublic personal information (as defined in
Title V of the ▇▇▇▇▇-▇▇▇▇▇-▇▇▇▇▇▇ Act of 1999 or any successor or federal or
state statute, and the rules and regulations thereunder, all as may be amended
or supplemented from time to time) is specifically and expressly limited to the
use or disclosure that is required or permitted by applicable privacy laws. Each
party shall, as required by applicable privacy laws, implement and maintain
reasonable administrative, technical, and physical safeguards designed to insure
the security and confidentiality of nonpublic personal information; protect
against anticipated threats or hazards to the security or integrity of nonpublic
personal information; and protect against unauthorized access, disclosure, or
use of nonpublic personal information.
11.3. The captions in this Agreement are included for convenience of reference
only and in no way define or delineate any of the provisions hereof or otherwise
affect their construction or effect.
11.4. This Agreement may be executed simultaneously in two or more
counterparts, each of which taken together shall constitute one and the same
instrument.
18
11.5. If any provision of this Agreement shall be held or made invalid by a
court decision, statute, rule or otherwise, the remainder of the Agreement shall
not be affected thereby.
11.6. Each party hereto shall cooperate with each other party and all
appropriate governmental authorities (including without limitation the SEC,
FINRA, and state insurance regulators) and shall permit such authorities
reasonable access to its books and records in connection with any investigation
or inquiry relating to this Agreement or the transactions contemplated hereby.
Notwithstanding the generality of the foregoing, each party hereto further
agrees to furnish the applicable Insurance Commissioner with any information or
reports in connection with services provided under this Agreement which such
Commissioner may request in order to ascertain whether the variable insurance
contract operations of the Company are being conducted in a manner consistent
with the applicable variable insurance contract laws and regulations and any
other applicable law or regulations.
11.7. The rights, remedies and obligations contained in this Agreement are
cumulative and are in addition to any and all rights, remedies, and obligations,
at law or in equity, which the parties hereto are entitled to under state and
federal laws.
11.8. 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 hereto.
19
IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be
executed in its name and on its behalf by its duly authorized representative and
its seal to be hereunder affixed hereto as of the date specified below.
HARTFORD LIFE INSURANCE COMPANY
For its behalf and such Separate Account(s)
designated in Schedule A:
By its authorized officer:
/s/ ▇▇▇▇▇▇ ▇ ▇▇▇▇▇▇▇
---------------------------------
Name: ▇▇▇▇▇▇ ▇ ▇▇▇▇▇▇▇
Title: Vice President
Date: 5.4.11
HARTFORD LIFE AND ANNUITY INSURANCE
COMPANY
For its behalf and such Separate Account(s)
designated in Schedule A:
By its authorized officer:
/s/ ▇▇▇▇▇▇ ▇ ▇▇▇▇▇▇▇
---------------------------------
Name: ▇▇▇▇▇▇ ▇ ▇▇▇▇▇▇▇
Title: Vice President
Date: 5.4.11
PIMCO EQUITY SERIES VIT
By its authorized officer:
BUSINESS [ILLEGIBLE] /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
---------------------------------
LEGAL [ILLEGIBLE] Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Title: Vice President
Date: 4/28/11
20
PIMCO INVESTMENTS LLC
By its authorized officer:
BUSINESS [ILLEGIBLE] /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
---------------------------------
LEGAL [ILLEGIBLE] Name: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Title: Head of Business Management
Date:
21
SCHEDULE A
DESIGNATED PORTFOLIOS:
PIMCO Equity Series VIT EqS Pathfinder(TM) Portfolio
ACCOUNTS:
Hartford Life Insurance Company Separate Account 7 (Date established: 12.8.1986)
Hartford Life and Annuity Insurance Company Separate Account 7 (Date
established: 4.1.1999
22
SCHEDULE B
ALLOCATION OF EXPENSES
PAID BY THE COMPANY PAID BY THE FUND
--------------------------------------------------------------------------------------------
Preparing and filing the Account's Preparing and filing the Fund's registration
registration statement statement
Text composition for Account prospectus and Text composition for Designated Portfolios'
supplements prospectuses and supplements
Text alterations of Account prospectus and Text alterations of Designated Portfolios'
supplements prospectuses and supplements
Printing Account prospectuses and supplements Printing and processing Designated
for use with prospective Contract owners; Portfolios' prospectus and supplements for
Printing Designated Portfolios' prospectuses use with existing Contract owners; or if
and supplements for use with prospective requested by the Company, providing
Contract owners camera-ready film, computer diskettes or
typeset electronic document files of such
documents and printing such documents for use
with Contract owners (1)
Text composition and printing of Account Text composition and printing of Funds'
statement of additional information SAI(s) (1)
Mailing and distributing Separate Account Mailing and distributing Designated
prospectuses, supplements and statement of Portfolios' prospectuses in connection with
additional information to existing Contract the delivery obligations under Section
owners as required by applicable law; 5(b)(2) of the 1933 Act, supplements and
SAI(s) to Contract owners (1)
Mailing and distributing Separate Account Printing, processing, mailing and
prospectuses and supplements to prospective distributing Designated Portfolios and
Contract owners; Account supplements and other communications
Mailing and distributing Series prospectuses related to fund substitutions, fund closings,
and supplements to prospective Contract fund mergers and other similar fund
owners transactions
Text composition of any annual and Text composition of annual and semi-annual
semi-annual reports of the Separate Account, reports of the Designated Portfolios;
printing, mailing, and distributing any printing, processing, mailing, and
annual and semi-annual reports of the distributing annual and semi-annual reports
Separate Account of the Designated Portfolios to existing
Contract owners (1) in connection with the
delivery obligations under Section 30(e) of
the 1940 Act and the rules promulgated
thereunder
Text composition, printing, mailing, Text composition, printing, processing,
distributing, and tabulation of proxy mailing, distributing, and tabulation of
statements and voting instruction proxy statements and voting instruction
solicitation materials to Contract owners solicitation materials to Contract owners
with respect to proxies sponsored by the with respect to proxies sponsored by the
Separate Accounts Designated Portfolios or the Fund
(1) The Company may choose to print the Designated Portfolios' prospectus(es).
SAI(s) and their semi annual and annual reports, or any of such documents,
in combination with such documents of other fund
23
companies. In this case, the Funds' share of the total expense for
printing, processing, and delivery of the combined materials shall be
allocated based upon the methodology, applied consistently, and deemed
reasonable and appropriate by the Company.
24
SCHEDULE C
PROCESSING SPECIFICATIONS
I. NAV AND DIVIDEND INFORMATION
Information regarding NAV and Dividend Distribution shall be provided in such
format as mutually agreed by the parties from time to time.
II. NSCC TRANSACTIONS
The following terms and conditions shall apply with respect to the receipt and
transmission of orders routed through the NSCC in accordance with the NSCC's
Defined Contribution Clearance & Settlement ("DCC&S") platform cycle file:
A. Subject to the terms of the statutory prospectus and SAI, including the
right to reject any order, the Fund will accept orders to purchase shares of the
Series available using the NSCC's Defined Contribution Clearance & Settlement
("DCC&S") platform. The Fund will also provide the Company with account
positions and activity data using the NSCC's Networking platform. The Company
shall pay for Series shares by federal funds wire using the NSCC's Fund/SERV
platform in accordance with the rules and regulations of the NSCC, as the same
may be amended from time to time. B. The Company shall use best efforts to
promptly notify the Fund or its designated transfer agent of its inability to
use the NSCC's DCC&S platform by telephone and/or facsimile.
C. The Fund will provide the Company with account positions and activity data
using the NSCC's Networking platform (i.e., the NSCC's product that allows the
exchange of account level information electronically).
D. Proceeds in respect of shares in the Designated Portfolios redeemed shall be
effectuated using the NSCC's Fund/SERVplatform.
E. The Distributor shall furnish notice to the Company of any income, dividends
or capital gain distributions payable on the Series' shares through the NSCC's
Fund/SERV and/or Mutual Fund Profile services, as applicable. F.
III. EXCEPTIONS
If the Company is prevented from transmitting Day 1 Trades to the Fund, or its
designee, through Fund/Serv on Day 2 due to any circumstances (such as computer
system failures experienced by the Company or the NSCC, natural catastrophes, or
other emergencies or human error), provided that the Company notifies the Fund,
or its designee, of such contingency prior to 9:30 a.m. Eastern Time on Day 2,
the Company may:
(a) transmit such Day 1 Trades to the Fund through Fund/SERV prior to
5:00 a.m. Eastern Time on Day 3, and such Day 1 Trades will be
effected at the Net Asset Value Per Share calculated as of Market
Close on Day 1, provided further that (i) the Company notifies the
Fund, or its designee, of the Day 1 Trade information prior to 9:00
a.m. Eastern Time on Day 2 and (ii) such transmission is consistent
with the Fund's NSCC Security Profile; or
(b) transmit and settle the Day 1 Trades through means other than
Fund/SERV prior to 9:00 a.m. Eastern Time on Day 2, and such Day 1
Trades will be effected at the Net Asset Value Share calculated as of
Market Close on Day 1.
25