PARTICIPATION AGREEMENT
BY AND AMOUNG
GE LIFE AND ANNUITY ASSURANCE COMPANY
ON BEHALH OF ITSELF AND
ITS SEPARATE ACCOUNTS
AND
The Prudential Insurance Company of America
AND
Prudential Investment Management Services LLC
AND
The Prudential Series Fund, Inc.
THIS AGREEMENT, made and entered into as of
("Agreement"), by and among The Prudential Series Fund, Inc., a Maryland
corporation (the "Fund"), The Prudential Insurance Company of America, a New
Jersey Corporation (the "Adviser"), Prudential Investment Management Services
LLC, a Delaware limited liability company (the "Distributor"), and GE Life and
Annuity Assurance Company, a Virginia life insurance company ("LIFE COMPANY"),
on behalf of itself and each of its segregated asset accounts listed in Schedule
A hereto, as the parties hereto may amend from time to time (each, an "Account,"
and collectively, the "Accounts").
WITNESSETH THAT:
WHEREAS, the Fund is registered with the Securities and Exchange
Commission ("SEC") as an open-end management investment company under the
Investment Company Act of 1940, as amended (the "1940 Act");
WHEREAS, the Fund is available to the extent set forth herein to act
as the investment vehicle for separate accounts established for variable life
insurance policies and variable annuity contracts to be offered by insurance
companies which have entered into participation
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agreements with the Fund and the Adviser ("Participating Insurance Companies");
WHEREAS, the Fund currently consists of separate investment
portfolios, shares ("Shares") of each of which are registered under the
Securities Act of 1933, as amended (the "1933 Act");
WHEREAS, the Distributor is duly registered as a broker-dealer under
the Securities Exchange Act of 1934, a amended, (the "1934 Act") and is a member
in good standing of the National Association of Securities Dealers, Inc. (the
"NASD");
WHEREAS, the Distributor serves as the principal underwriter of shares
of the Fund and is authorized to enter into agreements with third parties,
including the LIFE COMPANY, to offer shares of the Fund to segregated asset
accounts that serve as the investment vehicle for variable life and annuity
contracts;
WHEREAS, the Distributor will make Shares of each investment portfolio
of the Fund listed on Schedule A hereto (each, a "Portfolio" and collectively,
the "Portfolios") as the Parties hereto may amend from time to time available
for purchase by the Accounts;
WHEREAS, the Fund has received an order (the "Order") from the SEC to
permit 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 1940 Act and Rules 6e-2(b)(15) and 6e-3(T)(b)(15)
thereunder, to the extent necessary to permit shares of the Fund to be sold to
and held by variable annuity and variable life insurance separate accounts of
both affiliated and unaffiliated life insurance companies;
WHEREAS, LIFE COMPANY will be the issuer of certain variable annuity
contracts and variable life insurance policies (collectively, the "Contracts")
as set forth on Schedule A hereto, as the Parties hereto may amend from time to
time, which Contracts, if required by applicable law, will be registered under
the 1933 Act;
WHEREAS, LIFE COMPANY will, to the extent set forth herein, fund the
variable life insurance policies and variable annuity contracts through the
Accounts, each of which may be divided into two or more subaccounts
("Subaccounts"; reference herein to an "Account" includes reference to each
Subaccount thereof to the extent the context requires);
WHEREAS, LIFE COMPANY will serve as the depositor of the Accounts,
each of which is registered as a unit investment trust under the 1940 Act (or
exempt therefrom), and the security interests deemed to be issued by the
Accounts under the Contracts will be registered as securities under the 1933 Act
(or exempt therefrom);
WHEREAS, to the extent permitted by applicable insurance laws and
regulations, LIFE COMPANY intends to purchase Shares in one or more of the
Portfolios on behalf of the Accounts to fund the Contracts; and
NOW, THEREFORE, in consideration of the mutual benefits and promises
contained herein, the Parties hereto agree as follows:
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Section 1. Available Portfolios
-------------------------------
1.1 Available Portfolios
--------------------
The Distributor will make Shares of each Portfolio listed on Schedule
A available to LIFE COMPANY for purchase and redemption by the Accounts at the
net asset value next computed after the Distributor's receipt of a purchase or
redemption order and with no sales charges, in accordance with the Fund's then
current prospectus and subject to the terms and conditions of this Agreement.
The Board of Directors of the Fund may refuse to sell Shares of any Portfolio to
any person, or suspend or terminate the offering of Shares of any Portfolio if
such action is required by law or by regulatory authorities having jurisdiction
or if, in the sole discretion of the Directors acting in good faith and in light
of their fiduciary duties under federal and any applicable state laws, such
action is deemed in the best interests of the shareholders of such Portfolio.
1.2 Addition, Deletion or Modification of Portfolios.
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The Parties hereto may agree, from time to time, to add other
Portfolios to provide additional funding alternatives for the Contracts, or to
delete or modify existing Portfolios, by amending Schedule A hereto. Upon such
amendment to Schedule A, any applicable reference to a Portfolio, the Fund, or
its Shares herein shall include a reference to all Portfolios set forth on
Schedule A as then amended. Schedule A, as amended from time to time, is
incorporated herein by reference and is a part hereof.
1.3 No Sales to the General Public.
------------------------------
The Fund represents that shares of the Portfolios will be sold only to
Participating Insurance Companies, their separate accounts and qualified pension
and retirement plans ("Plans") and that no Shares of any Portfolio have been or
will be sold to the general public. Neither the Distributor nor the Fund will
sell Fund shares to any Participating Insurance Companies or Plans unless such
sale is made in conformity with the terms and conditions of the Order.
Section 2. Processing Transactions
-----------------------------------
2.1 Placing Orders.
--------------
(a) The Fund or its designated agent shall determine the net asset
value per share for each Portfolio available each Business Day and will use its
best effort to provide LIFE COMPANY with the net asset value per Share for each
Portfolio by 6:30 p.m. Eastern Time on each Business Day. As used herein,
"Business Day" shall mean any day on which (i) the New York Stock Exchange is
open for regular trading, and (ii) the Fund calculates the Portfolios' net asset
value. The Fund will notify LIFE COMPANY as soon as possible if on any Business
Day it is determined that the calculation of net asset value per share will be
available after 6:30 p.m. Eastern Time.
(b) LIFE COMPANY will place orders to purchase or redeem Shares with
the Fund or its designated agent by 9:00 a.m. Eastern Time the following
Business Day after receipt of such orders from the Accounts.
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(c) With respect to payment of the purchase price by LIFE COMPANY and
of redemption proceeds by the Fund, LIFE COMPANY and the Fund shall net purchase
and redemption orders with respect to each Portfolio and shall transmit one net
payment per Portfolio in accordance with Section 2.2, below.
(d) If the Fund provides materially incorrect Share net asset value
information (as determined under SEC guidelines), LIFE COMPANY or Fund, as
applicable, shall be entitled to an adjustment to the number of Shares purchased
or redeemed to reflect the correct net asset value per Share. Any material error
in the calculation or reporting of net asset value per Share, dividend or
capital gain information shall be reported promptly upon discovery to LIFE
COMPANY.
2.2 Payments
--------
(a) LIFE COMPANY shall pay for Shares of each Portfolio on the same
day that it notifies the Fund of a purchase request for such Shares. Payment for
Shares shall be made in federal funds transmitted to the Fund by wire to be
received by the Fund by 3.30 P.M. Eastern Time on the day the Fund is notified
of the purchase request for Shares.
(b) The Fund will wire payment in federal funds for net redemption's
to an account designated by LIFE COMPANY by 3.30 p.m. Eastern Time on the
Business Day the order is placed. The Fund shall not bear any responsibility
whatsoever for the proper disbursement or crediting of redemption proceeds by
LIFE COMPANY.
2.3 Applicable Price
----------------
(a) Share purchase payments and redemption orders that result from
purchase payments, premium payments, surrenders and other transactions under
Contracts (collectively, "Contract transactions") and that LIFE COMPANY receives
prior to the close of regular trading on the New York Stock Exchange on a
Business Day will be executed at the net asset values of the appropriate
Portfolios next computed after receipt by the Fund or its designated agent of
the orders. For purposes of this Section 2.3(a), LIFE COMPANY shall be the
designated agent of the Distributor and the Fund for receipt of orders relating
to Contract transactions on each Business Day and receipt by such designated
agent shall constitute receipt by the Fund; provided that the Fund receives
notice of such orders by 9:00 a.m. Eastern Time on the following Business Day.
(b) All other Share purchases and redemptions by LIFE COMPANY will be
effected at the net asset values of the appropriate Portfolios next computed
after receipt by the Fund r its designated agent of the order therefor, and such
orders will be irrevocable.
2.4 Dividends and Distributions
---------------------------
The Fund or its designated agent will furnish notice by wire or
telephone (followed by written confirmation) on or prior to the payment date to
LIFE COMPANY of any income dividends or capital gain distributions payable on
the Shares of any Portfolio. LIFE COMPANY hereby elects to reinvest all
dividends and capital gains distributions in additional Shares of the
corresponding Portfolio at the ex-dividend date net asset values until LIFE
COMPANY otherwise notifies the Fund or its designated agent in writing, it being
agreed by the Parties that the ex-
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dividend date and the payment date with respect to any dividend or distribution
will be the same Business Day. LIFE COMPANY reserves the right to revoke this
election and to receive all such income dividends and capital gain distributions
in cash. Any such revocation will take effect with respect to the next income
dividend or capital gain distribution following receipt by the Fund or its
designated agent of such notification from LIFE COMPANY.
2.5 Book Entry
----------
Issuance and transfer of Portfolio Shares will be by book entry only.
Stock certificates will not be issued to LIFE COMPANY. Shares ordered from the
Fund will be recorded in an appropriate title for LIFE COMPANY, on behalf of its
Accounts.
Section 3. Costs and Expenses
------------------------------
3.1 General
-------
(a) Except as otherwise specifically provided herein, each party will
bear all expenses incident to its performance under this Agreement.
(b) The Fund shall pay no fee or other compensation to the LIFE
COMPANY under this agreement, except that if the Fund or any Portfolio adopts
and implements a plan pursuant to Rule 12b-1 to finance distribution expenses,
then the Fund may make payments to the LIFE COMPANY or to the underwriter for
the Contracts if and in amounts agreed to by the Fund in writing.
3.2 Registration
------------
(a) The Fund will bear the cost of its registering as a management
investment company under the 1940 Act and registering its Shares under the 1933
Act, and keeping such registrations current and effective; including, without
limitation, the preparation of and filing with the SEC of Forms N-SAR and Rule
24f-2 Notices with respect to the Fund and its Shares and payment of all
applicable registration or filing fees with respect to any of the foregoing.
(b) LIFE COMPANY will bear the cost of registering, to the extent
required, each Account as a unit investment trust under the 1940 Act and
registering units of interest under the Contracts under the 1933 Act and keeping
such registrations current and effective; including, without limitation, the
preparation and filing with the SEC of Forms N-SAR and Rule 24f-2 Notices with
respect to each Account and its units of interest and payment of all applicable
registration or filing fees with respect to any of the foregoing.
3.3 Distribution Expenses
---------------------
LIFE COMPANY will bear the expenses of distribution. These expenses
would include by way of illustration, but are not limited to, the costs of
distributing to Contract owners, annuitants, insureds or participants (as
appropriate) under the Contracts (collectively, "Participants") the following
documents, whether they relate to the Account or the Fund: prospectuses,
statements of additional information, proxy materials and periodic reports.
These costs would also include the costs of preparing, printing, and
distributing sales literature and
5
advertising relating to the Portfolios (all of which require the prior written
consent of the Fund) to the extent such materials are distributed in connection
with the Contracts, and, except for advertising materials prepared by the Funds,
filing such materials with, and obtaining approval from, the SEC, NASD, any
state insurance regulatory authority, and any other appropriate regulatory
authority, to the extent required by law.
3.4 Other Expenses
--------------
(a) The Fund will bear, or arrange for others to bear, the costs of
preparing, filing with the SEC and setting for printing the Fund's prospectus,
statement of additional information and any amendments or supplements thereto
(collectively, the "Fund Prospectus"), periodic reports to shareholders, the
Fund proxy material and other shareholder communications to the extent required
by federal or state law or as deemed appropriate by the Fund. The Fund will
bear all taxes required to be paid by the Fund on the issuance or transfer of
Fund shares. In addition, the Fund will bear the cost of printing and delivering
the Fund Prospectus to existing Participants who have directed LIFE COMPANY to
purchase Shares of the Fund, and will bear the proportionate cost of preparing
and printing any supplements or amendments to the Fund Prospectus to the extent
that such supplements or amendments were not required by LIFE COMPANY.
(b) LIFE COMPANY will bear the costs of preparing, filing with the
SEC and printing each Account's prospectus, statement of additional information
and any amendments or supplements thereto (collectively, the "Account
Prospectus"), any periodic reports to Participants, voting instruction
solicitation material and the Fund prospectus, except as provided in paragraph
(a) above, and other Participant communications to the extent required by
federal or state law or as deemed appropriate by LIFE COMPANY.
(c) LIFE COMPANY will, to the extent required by law, print in
quantity and deliver to existing Participants the documents described in Section
3.4(b) above and will deliver to such Participants the prospectuses as provided
by the Fund. LIFE COMPANY may elect to receive such prospectuses in camera ready
and/or computer diskette format and the Fund will make reasonable effort to use
computer formatting requested by LIFE COMPANY, including but not limited to,
PDF, HTML. The Fund will print the Fund statement of additional information,
proxy materials relating to the Fund and periodic reports of the Fund.
3.5 Parties To Cooperate
--------------------
Each party agrees to cooperate with the other, in arranging to print,
mail and/or deliver, in a timely manner, combined or coordinated prospectuses or
other materials of the Fund and the Accounts.
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Section 4. Legal Compliance
----------------------------
4.1 Tax Laws
--------
(a) The Fund represents and warrants that it is or will be qualified
as a regulated investment company ("RIC") under Subchapter M of the Internal
Revenue Code of 1986, as amended (the "Code") or any successor or similar
provision, and represents that it is or will qualify and maintain its
qualification as a RIC and to comply with the diversification requirements set
forth in Section 817(h) of the Code and the regulations thereunder or any
successor or similar provision. The Fund will notify LIFE COMPANY immediately
upon having a reasonable basis for believing that it has ceased to so qualify or
so comply, or that it might not so qualify or so comply in the future.
(b) Subject to Section 4.1(a) above, LIFE COMPANY represents and
warrants that the Contracts currently are and will be treated as annuity
contracts or life insurance contracts under applicable provisions of the Code
and that it will maintain such treatment; LIFE COMPANY will notify the Fund
immediately upon having a reasonable basis for believing that any of the
Contracts have ceased to be so treated or that they might not be so treated in
the future.
(c) LIFE COMPANY represents and warrants that each Account is a
"segregated asset account" and that interests in each Account 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. LIFE COMPANY will continue to meet such definitional
requirements, and it will notify the Fund 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.
4.2 Insurance and Certain Other Laws
--------------------------------
(a) LIFE COMPANY represents and warrants that (i) it is an insurance
company duly organized, validly existing and in good standing under all
applicable laws and has full corporate power, authority and legal right to
execute, deliver and perform its duties and comply with its obligations under
this Agreement, (ii) it has legally and validly established and maintains each
Account as a segregated asset account under all applicable laws and regulations,
and (iii) the Contracts comply in all material respects with all applicable
federal and state laws and regulations.
(b) The Fund represents and warrants that it is a corporation duly
organized, validly existing, and in good standing under the laws of the State of
Maryland and has full corporate power, authority, and legal right to execute,
deliver, and perform its duties and comply with its obligations under this
Agreement. Notwithstanding the foregoing, the Fund, makes no representations as
to whether any aspect of its operations (including, but not limited to, fees and
expenses and investment policies) otherwise complies with the insurance laws or
regulations of any state.
(c) The Adviser represents that it is and warrants that it shall
remain duly registered as an investment adviser under all applicable federal and
state securities laws and agrees that it shall perform its obligations to the
Fund in accordance in all material respects with such laws.
(d) The Distributor represents that it is and warrants that it shall
remain duly
7
registered as a broker-dealer under all applicable federal and state securities
laws and agrees that is shall perfume its obligations to the Fund in accordance
in all material respects with such laws.
(e) LIFE COMPANY acknowledges and agrees that it is the
responsibility of LIFE COMPANY and other Participating Insurance Companies to
determine investment restrictions under state insurance law applicable to any
Portfolio, and that the Fund shall bear no responsibility to LIFE COMPANY for
any such determination or the correctness of such determination. LIFE COMPANY
has determined that the investment restrictions set forth in the current Fund
Prospectus are sufficient to comply with all investment restrictions under state
insurance laws that are currently applicable to the Portfolios as a result of
the Accounts' investment therein. LIFE COMPANY shall inform the Fund of any
additional investment restrictions imposed by state insurance law after the date
of this agreement that may become applicable to the Fund or any Portfolio from
time to time as a result of the Accounts' investment therein. Upon receipt of
any such information from LIFE COMPANY or any other Participating Insurance
Company, the Fund shall determine whether it is in the best interests of
shareholders to comply with any such restrictions. If the Fund determines that
it is not in the best interests of shareholders to comply with a restriction
determined to be applicable by the LIFE COMPANY, the Fund shall so inform LIFE
COMPANY, and the Fund and LIFE COMPANY shall discuss alternative accommodations
in the circumstances.
4.3 Securities Laws
---------------
(a) LIFE COMPANY represents and warrants that (i) interests in each
Account pursuant to the Contracts will be registered under the 1933 Act to the
extent required by the 1933 Act, (ii) the Contracts will be duly authorized for
issuance and sold in compliance with all applicable federal and state laws,
including, without limitation, the 1933 Act, the 1934 Act, the 1940 Act and
applicable state law, (iii) each Account is and will remain registered under the
1940 Act, to the extent required by the 1940 Act, (iv) each Account does and
will comply in all material respects with the requirements of the 1940 Act and
the rules thereunder, to the extent required, (v) each Account's 1933 Act
registration statement relating to the Contracts, together with any amendments
thereto, will at all times comply in all material respects with the requirements
of the 1933 Act and the rules thereunder, (vi) LIFE COMPANY will amend the
registration statement for its Contracts under the 1933 Act and for its Accounts
under the 1940 Act from time to time as required in order to effect the
continuous offering of its Contracts or as may otherwise be required by
applicable law, and (vii) each Account Prospectus will at all times comply in
all material respects with the requirements of the 1933 Act and the rules
thereunder.
(b) The Distributor and the Fund represents and warrants that (i)
Shares sold pursuant to this Agreement will be registered under the 1933 Act to
the extent required by the 1933 Act and will be duly authorized for issuance and
sold in compliance with applicable law, (ii) the Fund is and will remain
registered under the 1940 Act to the extent required by the 1940 Act, (iii) the
Fund will amend the registration statement under the 1933 Act and the 1940 Act
from time to time as required in order to effect the continuous offering of its
Shares, (iv) the Fund does and will comply in all material respects with the
requirements of the 1940 Act and the rules thereunder, (v) the Fund's 1933 Act
registration statement, together with any amendments thereto, will at all times
comply in all material respects with the requirements of the 1933 Act and rules
thereunder, (vi) the Fund's Prospectus will at all times comply in all material
respects with the requirements of the 1933 Act and the rules thereunder and
(vii) all of its directors, officers, employees, investment advisers, and other
individuals/entities having access to the funds and/or securities of any
Portfolio are and
8
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 minimal
coverage as required currently by Rule 17g-(1) of the 1940 Act or related
provisions as may be promulgated from time to time. The aforesaid bond includes
coverage for larceny and embezzlement and is issued by a reputable bonding
company.
(c) The Fund will at its expense register and qualify its Shares for
sale in accordance with the laws of any state or other jurisdiction if and to
the extent reasonably deemed advisable by the Fund.
4.4 Notice of Certain Proceedings and Other Circumstances.
-----------------------------------------------------
(a) The Distributor and the Fund will immediately notify LIFE COMPANY
of (i) the issuance by any court or regulatory body of any stop order, cease and
desist order, or other similar order with respect to the Fund's registration
statement under the 1933 Act and the 1940 Act or the Fund Prospectus, (ii) any
request by the SEC for any amendment to such registration statement or the Fund
Prospectus that may affect the offering of Shares of any Portfolio, (iii) the
initiation of any proceedings for that purpose or for any other purpose relating
to the registration or offering of Shares of any Portfolio, or (iv) any other
action or circumstances that may prevent the lawful offer or sale of Shares of
any Portfolio in any state or jurisdiction, including, without limitation, any
circumstances in which such Shares are not registered and are not, in all
material respects, issued and sold in accordance with applicable state and
federal law. The Fund will make every reasonable effort to prevent the issuance
of any such stop order, cease and desist order or similar order and, if any such
order is issued, to obtain the lifting thereof at the earliest possible time.
(b) LIFE COMPANY will immediately notify the Distributor and the Fund
of (i) the issuance by any court or regulatory body of any stop order, cease and
desist order, or other similar order with respect to each Account's registration
statement under the 1933 Act or 1940 Act relating to the Contracts or each
Account Prospectus, (ii) any request by the SEC for any amendment to such
registration statement or Account Prospectus that may affect the offering of
Shares of any Portfolio, (iii) the initiation of any proceedings for that
purpose or for any other purpose relating to the registration or offering of
each Account's interests pursuant to the Contracts, or (iv) any other action or
circumstances that may prevent the lawful offer or sale of said interests in any
state or jurisdiction, including, without limitation, any circumstances in which
said interests are not registered and are not, in all material respects, issued
and sold in accordance with applicable state and federal law. LIFE COMPANY will
make every reasonable effort to prevent the issuance of any such stop order,
cease and desist order or similar order and, if any such order is issued, to
obtain the lifting thereof at the earliest possible time.
4.5 Documents Provided by LIFE COMPANY; Information About the
---------------------------------------------------------
Fund.
----
(a) LIFE COMPANY will provide to the Fund or its designated agent at
least one (1) complete copy of all SEC registration statements, Account
Prospectuses, reports, any preliminary and final voting instruction solicitation
material, applications for exemptions, requests for no-action letters, and all
amendments to any of the above, that relate to each Account or the Contracts,
within a reasonable period of time following with the filing of such document
with the SEC or other regulatory authorities.
9
(b) LIFE COMPANY will provide to the Fund or its designated agent at
least one (1) complete copy of each piece of sales literature or other
promotional material in which any Portfolio, the Fund or any of its affiliates
is named, at least ten (10) Business Days prior to its use or such shorter
period as the Parties hereto may, from time to time, agree upon. No such
material shall be used if the Fund or its designated agent reasonably objects to
such use within ten (10) Business Days after receipt of such material or such
shorter period as the Parties hereto may, from time to time, agree upon.
(c) Neither LIFE COMPANY nor any of its affiliates will give any
information or make any representations or statements on behalf of or concerning
any Portfolio, the Fund or its affiliates in connection with the sale of the
Contracts other than (i) the information or representations contained in the
then current registration statement, including the Fund Prospectus contained
therein, relating to Shares, as such registration statement and the Fund
Prospectus may be amended from time to time; (ii) in reports or proxy materials
for the Fund; (iii) in published reports for the Fund that are in the public
domain and approved by the Fund for distribution by LIFE COMPANY; or (iv) in
sales literature or other promotional material approved by the Fund for use by
LIFE COMPANY, except with the express written permission of the Fund.
(d) For the purposes of this Section 4.5, 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, or other public media
(e.g., on-line networks such as the Internet or other electronic messages)),
sales literature (i.e., any written communication distributed or made generally
available to customers or the public, including brochures, circulars, research
reports, market letters, form letters, seminar texts, reprints or excerpts of
any other advertisement, sales literature, or published article), educational or
training materials or other communications distributed or made generally
available to some or all agents or employees, registration statements,
prospectuses, statements of additional information, shareholder reports, and
proxy materials and any other material constituting sales literature or
advertising under the NASD rules, the 1933 Act or the ▇▇▇▇ ▇▇▇.
4.6 Documents Provided by Fund; Information About LIFE COMPANY.
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(a) The Fund will provide to LIFE COMPANY at least one (1) complete
copy of all SEC registration statements, Fund Prospectuses, reports, any
preliminary and final proxy material, applications for exemptions, requests for
no-action letters, and all amendments to any of the above, that relate to the
Fund or the Shares of a Portfolio, within a reasonable period of time following
with the filing of such document with the SEC or other regulatory authorities.
(b) The Fund will provide to LIFE COMPANY copies of all Fund
prospectuses, and printed copies of all statements of additional information,
proxy materials, periodic reports to shareholders and other materials required
by law to be sent to Participants who have allocated any Contract value to a
Portfolio. The Fund will provide such copies to LIFE COMPANY in a timely manner
so as to enable LIFE COMPANY to print and distribute such materials within the
time required by law to be furnished to Participants.
(c) The Fund will provide to LIFE COMPANY or its designated agent at
least one
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(1) complete copy of each piece of sales literature or other promotional
material in which LIFE COMPANY, or any of its respective affiliates is named, or
that refers to the Contracts, at least ten (10) Business Days prior to its use
or such shorter period as the Parties hereto may, from time to time, agree upon.
No such material shall be used if LIFE COMPANY or its designated agent
reasonably objects to such use within ten (10) Business Days after receipt of
such material or such shorter period as the Parties hereto may, from time to
time, agree upon.
(d) Neither the Fund nor any of its affiliates will give any
information or make any representations or statements on behalf of or concerning
LIFE COMPANY, each Account, or the Contracts other than (i) the information or
representations contained in the registration statement, including each Account
Prospectus contained therein, relating to the Contracts, as such registration
statement and Account Prospectus may be amended from time to time; (ii) in
published reports for the Account or the Contracts that are in the public domain
and approved by LIFE COMPANY for distribution; or (iii) in sales literature or
other promotional material approved by LIFE COMPANY or its affiliates, except
with the express written permission of LIFE COMPANY.
(e) The Distributor shall cause its principal underwriter to adopt
and implement procedures reasonably designed to ensure that information
concerning LIFE COMPANY, and its respective affiliates that is intended for use
only by brokers or agents selling the Contracts (i.e., information that is not
intended for distribution to Participants) ("broker only materials") is so used,
and neither LIFE COMPANY, nor any of its respective affiliates shall be liable
for any losses, damages or expenses relating to the improper use of such broker
only materials.
(f) For purposes of this Section 4.6, 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, or other public media (i.e., any
written communication distributed or made generally available to customers or
the public, including brochures, circulars, research reports, market letters,
form letters, seminar texts, reprints or excerpts of any other advertisement,
sales literature, or published article), educational or training materials or
other communications distributed or made generally available to some or all
agents or employees, registration statements, prospectuses, statements of
additional information, shareholder reports, and proxy materials and any other
material constituting sales literature or advertising under the NASD rules, the
1933 Act or the 1940 Act.
Section 5. Mixed and Shared Funding
------------------------------------
LIFE COMPANY acknowledges that the Fund requested and received an
order from the SEC granting relief from various provisions of the 1940 Act and
the rules thereunder to the extent necessary to permit Fund shares to be sold to
and held by variable annuity and variable life insurance separate accounts of
both affiliated and unaffiliated Participating Insurance Companies, as well as
by Plans. Any conditions or undertakings that may be imposed on LIFE COMPANY and
the Fund by virtue of such order is incorporated herein by reference, as though
set forth herein in full, and the parties to this Agreement shall comply with
such conditions and undertakings to the extent applicable to each such party.
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Section 6. Termination
-----------------------
6.1 Events of Termination
---------------------
Subject to Section 6.4 below, this Agreement will terminate as to a
Portfolio:
(a) at the option of any party, with or without cause, upon six (6)
months advance written notice to the other parties; or
(b) at the option of LIFE COMPANY if shares of a Portfolio are not
reasonably available to meet the requirements of the Contracts as determined by
LIFE COMPANY; provided, however, that such a termination shall apply only to the
Portfolio(s) not available. Prompt written notice of the election to terminate
for such cause shall be furnished by LIFE COMPANY to the Fund;
(c) at the option of the Fund upon institution of formal proceedings
against LIFE COMPANY by the NASD, the SEC, any state insurance regulator or any
other regulatory body regarding LIFE COMPANY's obligations under this Agreement
or related to the sale of the Contracts, the operation of each Account, or the
purchase of Shares, if, in each case, the Fund reasonably determines that such
proceedings, or the facts on which such proceedings would be based, have a
material likelihood of imposing material adverse consequences on the Portfolio
with respect to which the Agreement is to be terminated; or
(d) at the option of LIFE COMPANY upon institution of formal
proceedings against the Fund, its principal underwriter, or its investment
adviser by the NASD, the SEC, or any state insurance regulator or any other
regulatory body regarding the Fund's obligations under this Agreement or related
to the operation or management of the applicable Portfolio or the purchase of
the applicable Portfolios, if, in each case, LIFE COMPANY reasonably determines
that such proceedings, or the facts on which such proceedings would be based,
have a material likelihood of imposing material adverse consequences on LIFE
COMPANY, or the Subaccount corresponding to the Portfolio with respect to which
the Agreement is to be terminated; or
(e) at the option of any party in the event that (i) a Portfolio's
Shares are not registered and, in all material respects, issued and sold in
accordance with any applicable federal or state law, or (ii) such law precludes
the use of such Shares as an underlying investment medium of the Contracts
issued or to be issued by LIFE COMPANY; or
(f) subject to Section 4.1(a) above, at the option of LIFE COMPANY if
the applicable Portfolio ceases to qualify as a RIC under Subchapter M of the
Code or under successor or similar provisions or fails to comply with the
diversification requirements of Section 817(h) of the Code or such requirements
under successor or similar provisions or if Life Company reasonably believes the
applicable Portfolio may so cease to qualify or
(g) subject to Section 4.1(b) above, at the option of the Fund if the
Contracts issued by LIFE COMPANY cease to qualify as annuity contracts or life
insurance contracts under the Code or if Fund reasonably believes the applicable
Contracts may so cease to qualify, or if interests in an Account under the
Contracts are not registered, where required, and, in all material respects,
12
are not issued or sold in accordance with any applicable federal or state law
and, in each case, LIFE COMPANY upon written request fails to provide reasonable
assurance that it will take action to cure or correct such failure; or
(h) at the option of the Fund by written notice to LIFE COMPANY, if
the Fund shall determine in its sole judgment exercised in good faith, that LIFE
COMPANY and/or its affiliated companies 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
(i) at the option of LIFE COMPANY by written notice to the Fund, if
LIFE COMPANY shall determine in its sole judgment exercised in good faith, that
the Fund and/or its affiliated companies 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
(j) at the option of LIFE COMPANY by written notice to the Fund, if
LIFE COMPANY shall determine in its sole judgment exercised in good faith, that
the Adviser and/or its affiliated companies 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
(k) at the option of either party upon a determination by a majority
of the Fund's Board of Directors, or a majority of the Fund's disinterested
directors, that an irreconcilable material conflict exists among the interests
of: (1) all contract owners of variable insurance products of all separate
accounts; or (2) the interests of the Participating Insurance Companies
investing in the Fund; or
(l) at the option of any party upon another party's material breach
of any provision of this Agreement; or
(m) with respect to any Account, upon requisite vote of the Contract
owners having an interest in that Account (or any subaccount) or upon the
receipt of a substitution order by the SEC to substitute the shares of another
investment company for the corresponding Fund shares in accordance with the
terms of the Contracts for which those Fund shares had been selected to serve as
the underlying investment media. LIFE COMPANY will give at least 30 days' prior
written notice to the Fund of the date of any proposed vote to replace the
Fund's shares; or
at the option of the Fund if it suspends or terminates the offering of Shares of
the applicable Portfolio to all Participating Insurance Companies or only
designated Participating Insurance Companies, if such action is required by law
or by regulatory authorities having jurisdiction or if, in the sole discretion
of the Fund acting in good faith, suspension or termination is necessary in the
best interests of the shareholders of the applicable Portfolio (it being
understood that "shareholders" for this purpose shall mean Participants), such
notice effective immediately upon receipt of written notice, it being understood
that a lack of Participating Insurance Companies interest in the applicable
Portfolio may be grounds for a suspension or termination as to such Portfolio;
(o) at any time upon the written agreement of the Parties.
13
6.2 Notice Requirement for Termination
----------------------------------
No termination of this Agreement will be effective unless and until
the party terminating this Agreement gives prior written notice to the other
party to this Agreement of its intent to terminate, and such notice shall set
forth the basis for such termination. Furthermore:
(a) in the event that any termination is based upon the provisions of
Section 6.1(a) hereof, such prior written notice shall be given at least six (6)
months in advance of the effective date of termination unless a shorter time is
agreed to by the Parties hereto;. It is understood and agreed that the right to
terminate this Agreement under Section 6.1(a) may be exercised for any reason or
for no reason;
(b) in the event that any termination is based upon the provisions of
Section 6.1(b), 6.1(c), 6.1(d), 6.1(f), 6.1(g) or 6.1(l) hereof, prompt written
notice of the election to terminate this Agreement for cause shall be furnished
by the party terminating the Agreement to the non-terminating parties, with said
termination effective upon receipt of such notice by the non-terminating
parties;
(c) in the event that any termination is based upon the provisions of
Section 6.1(e), 6.1(h), 6.1(i), 6.1(j), 6.1(k),6.1(m), or 6.1(n) hereof, such
prior written notice shall be given at least 30 days in advance of the effective
date of termination unless a shorter time is agreed to by the Parties hereto;
and
6.3 Fund To Remain Available
------------------------
Notwithstanding any termination of this Agreement, the Fund will, at
the option of LIFE COMPANY, continue to make available additional shares of a
Portfolio 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, without
limitation, the owners of the Existing Contracts will be permitted to reallocate
investments in Portfolios of the Fund (as in effect on such date), redeem
investments in Portfolios of the Fund and/or invest in Portfolios of the Fund
upon the making of additional purchase payments under the Existing Contracts.
Notwithstanding any termination of this Agreement, LIFE COMPANY agrees to
distribute to holders of Existing Contracts all materials required by law to be
distributed to such holders (including, without limitation, prospectuses,
statements of additional information, proxy materials and periodic reports). The
parties agree that this Section 6.3 will not apply to any terminations under the
conditions of the Order and the effect of such terminations will be governed by
the Order.
14
6.4 Survival of Warranties and Indemnifications
-------------------------------------------
All warranties and indemnifications will survive the termination of
this Agreement.
Section 7. Parties To Cooperate Respecting Termination
-------------------------------------------------------
Subject to the provisions of Section 6.3 hereof, the Parties hereto
agree to cooperate and give reasonable assistance to one another in taking all
necessary and appropriate steps for the purpose of ensuring that an Account owns
no Shares of the applicable Portfolio after the Final Termination Date with
respect thereto, or, in the case of a termination pursuant to Section 6.1(a),
the termination date specified in the notice of termination. Such steps may
include combining the affected Account with another Account, substituting other
mutual fund shares for those of the affected Portfolio, or otherwise terminating
participation by the Contracts in such Portfolio.
Section 8. Assignment
----------------------
This Agreement may not be assigned by any party, except with the prior
written consent of all the Parties.
Section 9. Notices
-------------------
Notices and communications required or permitted by any provision of
this agreement hereof will be given by means mutually acceptable to the Parties
concerned. When otherwise agreed each notice or communication required or
permitted by this Agreement will be given to the following persons at the
following addresses and facsimile numbers, or such other persons, addresses or
facsimile numbers as the party receiving such notices or communications may
subsequently direct in writing:
If to LIFE COMPANY;
GE Life and Annuity Assurance Company
▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attn: General Counsel
If to the FUND:
The Prudential Series Fund, Inc
Gateway Center Three
▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇/▇▇/ ▇▇▇▇▇
▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇
Attn: Secretary
If to the ADVISER:
The Prudential Insurance Company of America
▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇/▇▇/ ▇▇▇▇▇
▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attn: Secretary
15
If to the DISTRIBUTOR:
Prudential Investment Management Services LLC
Gateway Center Three
▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇/▇▇/ ▇▇▇▇▇
▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇
Attn: Secretary
Section 10. Voting Procedures
------------------------------
Subject to the cost allocation procedures set forth in Section 3
hereof, LIFE COMPANY will distribute all proxy material furnished by the Fund to
Participants to whom pass-through voting privileges are required to be extended
and will solicit voting instructions from Participants. LIFE COMPANY will vote
Shares in accordance with timely instructions received from Participants. LIFE
COMPANY will vote Shares that are (a) not attributable to Participants to whom
pass-through voting privileges are extended, or (b) attributable to
Participants, but for which no timely instructions have been received, in the
same proportion as Shares for which said instructions have been received from
Participants, so long as and to the extent that the 1940 Act requires pass
through voting privileges for Participants. Neither LIFE COMPANY nor any of its
affiliates will in any way recommend action in connection with or oppose or
interfere with the solicitation of proxies for the Shares held for such
Participants. LIFE COMPANY reserves the right to vote shares held in any Account
in its own right, to the extent permitted by law. LIFE COMPANY shall be
responsible for assuring that each of its Accounts holding Shares calculates
voting privileges in the manner required by the Order obtained by the Fund. The
Fund will notify LIFE COMPANY of any amendments to the Order it has obtained.
Section 11. Indemnification
----------------------------
11.1 By LIFE COMPANY
---------------
(a) Except to the extent provided in Sections 11.1(b) and 11.1(c),
below, LIFE COMPANY agrees to indemnify and hold harmless the Fund, its
affiliates, and each person, if any, who controls the Fund or its affiliates
within the meaning of Section 15 of the 1933 Act including the Adviser and the
Distributor, and each of their respective directors and officers (collectively,
the "Indemnified Parties" for purposes of this Section 11.1) against any and all
losses, claims, damages, costs, expenses, liabilities (including amounts paid in
settlement with the written consent of LIFE COMPANY) or actions in respect
thereof (including, to the extent reasonable, legal and other expenses), to
which the Indemnified Parties may become subject under any statute, regulation,
at common law or otherwise insofar as such losses, claims, damages, costs,
expenses, liabilities or actions:
(i) arise out of or are based upon any untrue statement or
alleged untrue statement of any material fact contained in
any Account's 1933 Act registration statement, any Account
Prospectus, the Contracts, or sales literature or
advertising 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
16
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
written information furnished to LIFE COMPANY by or on
behalf of the Fund for use in any Account's 1933 Act
registration statement, any Account Prospectus, the
Contracts, or sales literature or advertising (or any
amendment or supplement to any of the foregoing); or
(ii) arise out of or as a result of any other statements or
representations (other than statements or representations
contained in the Fund's 1933 Act registration statement,
the Fund Prospectus, sales literature or advertising of
the Fund, or any amendment or supplement to any of the
foregoing, not supplied for use therein by or on behalf of
LIFE COMPANY or its affiliates and on which such persons
have reasonably relied) or the negligent, illegal or
fraudulent conduct of LIFE COMPANY or its respective
affiliates or persons under their control, in connection
with the sale, marketing or distribution of the Contracts
or Shares; or
(iii) arise out of or are based upon any untrue statement or
alleged untrue statement of any material fact contained in
the Fund's 1933 Act registration statement, the Fund
Prospectus, sales literature or advertising of the Fund,
or any amendment or supplement to any of the foregoing, 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 and in
conformity with information furnished in writing to the
Fund or its affiliates by or on behalf of LIFE COMPANY or
its for use in the Fund's 1933 Act registration statement,
the Fund Prospectus, sales literature or advertising of
the Fund, or any amendment or supplement to any of the
foregoing; or
(iv) arise as a result of any failure by LIFE COMPANY or
persons under its control or any third party with which
LIFE COMPANY has contractually delegated administration
responsibilities for the Contracts to perform the
obligations, provide the services and furnish the
materials required under the terms of this Agreement, or
any material breach of any representation and/or warranty
made by LIFE COMPANY or persons under its control in this
Agreement or arise out of or result from any other
material breach of this Agreement by LIFE COMPANY or
persons under its control; or
(v) arise as a result of failure to transmit a request for
purchase or redemption of Shares or payment therefor
within the time period specified herein and otherwise in
accordance with the procedures set forth in this
Agreement; or
(vi) arise as a result of any unauthorized use of the trade
names of the
17
Fund to the extent such use is not required by applicable
law or regulation.
(b) This indemnification is in addition to any liability that LIFE
COMPANY may otherwise have. LIFE COMPANY shall not be liable under this Section
11.1 with respect to any losses, claims, damages, costs, expenses, liabilities
or actions to which an Indemnified Party would otherwise be subject by reason of
willful misfeasance, bad faith, or gross negligence in the performance by that
Indemnified Party of its duties or by reason of that Indemnified Party's
reckless disregard of obligations or duties (i) under this Agreement, or (ii) to
the Fund.
(c) LIFE COMPANY shall not be liable under this Section 11.1 with
respect to any action against an Indemnified Party unless the Fund shall have
notified LIFE COMPANY in writing promptly after the summons or other first legal
process giving information of the nature of the action 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 LIFE COMPANY shall be
relieved of liability under this Section 11.1 only to the extent the
indemnifying party is damaged solely by reason of such party's failure to so
notify and failure to notify LIFE COMPANY of any such action shall not relieve
LIFE COMPANY from any liability which they may have to the Indemnified Party
against whom such action is brought otherwise than on account of this Section
11.1. Except as otherwise provided herein, in case any such action is brought
against an Indemnified Party, LIFE COMPANY shall be entitled to participate, at
its own expense, in the defense of such action and also shall be entitled to
assume the defense thereof, (which shall include, without limitation, the
conduct of any ruling request and closing agreement or other settlement
proceeding with the IRS), with counsel approved by the Indemnified Party named
in the action, which approval shall not be unreasonably withheld. After notice
from LIFE COMPANY to such Indemnified Party of LIFE COMPANY's election to assume
the defense thereof, the Indemnified Party will cooperate fully with LIFE
COMPANY and shall bear the fees and expenses of any additional counsel retained
by it, and LIFE COMPANY will not be liable to such Indemnified Party under this
Agreement for any legal or other expenses subsequently incurred by such
Indemnified Party independently in connection with the defense thereof, other
than reasonable costs of investigation.
11.2 By the Fund, Adviser and the Distributor
----------------------------------------
(a) Except to the extent provided in Sections 11.2(b) and 11.2(c)
below, the Fund, the Adviser and the Distributor agree to indemnify and hold
harmless LIFE COMPANY, its affiliates, and each person, if any, who controls
LIFE COMPANY or its affiliates within the meaning of Section 15 of the 1933 Act
and each of their respective directors and officers (collectively, the
"Indemnified Parties" for purposes of this Section 11.2) against any and all
losses, claims, damages, costs, expenses, liabilities (including amounts paid in
settlement with the written consent of the Fund) or actions in respect thereof
(including, to the extent reasonable, legal and other expenses), to which the
Indemnified Parties may become subject under any statute, regulation, at common
law, or otherwise; insofar as such losses, claims, damages, costs, expenses,
liabilities or actions:
18
(i) arise out of or are based upon any untrue statement or
alleged untrue statement of any material fact contained in
the Fund's 1933 Act registration statement, Prospectus or
sales literature or advertising 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 to any Indemnified Party if such statement
or omission or such alleged statement or omission was made
in reliance upon and in conformity with written
information furnished to the Fund or its affiliates by or
on behalf of LIFE COMPANY or its affiliates for use in the
Fund's 1933 Act registration statement, the Fund
Prospectus, or in sales literature or advertising or
otherwise for use in connection with the sale of Contracts
or Shares (or any amendment or supplement to any of the
foregoing); or
(ii) arise out of or as a result of any other statements or
representations (other than statements or representations
contained in any Account's 1933 Act registration
statement, any Account Prospectus, sales literature or
advertising for the Contracts, or any amendment or
supplement to any of the foregoing, not supplied for use
therein by or on behalf of the Fund or its affiliates and
on which such persons have reasonably relied) or the
negligent, illegal or fraudulent conduct of the Fund, the
Distributor their respective affiliates, in connection
with the sale, marketing or distribution of Fund Shares;
or
(iii) arise out of or are based upon any untrue statement or
alleged untrue statement of any material fact contained in
any Account's 1933 Act registration statement, any Account
Prospectus, sales literature or advertising covering the
Contracts, or any amendment or supplement to any of the
foregoing, 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 in conformity with written information furnished to
LIFE COMPANY, or its affiliates by or on behalf of the
Fund for use in any Account's 1933 Act registration
statement, any Account Prospectus, sales literature or
advertising covering the Contracts, or any amendment or
supplement to any of the foregoing; or
(iv) arise as a result of any failure by the Fund, its Adviser
or the Distributor to perform the obligations, provide the
services and furnish the materials required of it under
the terms of this Agreement, including, without
limitation, any failure of the Fund or its designated
agent to inform LIFE COMPANY of the correct net asset
values per share for each Portfolio on a timely basis
sufficient to ensure the timely execution of all purchase
and redemption orders
19
at the correct net asset value per share, or any material
breach of any representation and/or warranty made in this
Agreement or arising out of or resulting from any other
material breach of this Agreement by the Fund, its Adviser
or the Distributor
(b) This indemnification is in addition to any liability that the
Fund, its Adviser or the Distributor may otherwise have. Neither the Fund, its
Adviser nor the Distributor shall not be liable under this Section 11.2 with
respect to any losses, claims, damages, costs, expenses, liabilities or actions
to which an Indemnified Party would otherwise be subject by reason of willful
misfeasance, bad faith, or gross negligence in the performance by that
Indemnified Party of its duties or by reason of such Indemnified Party's
reckless disregard of its obligations and duties (i) under this Agreement, or
(ii) to LIFE COMPANY, each Account or Participants.
(c) Neither the Fund, its Adviser nor the Distributor shall be liable
under this Section 11.2 with respect to any action against an Indemnified Party
unless the Indemnified Party shall have notified the Fund, the Adviser and the
Distributor in writing promptly after the summons or other first legal process
giving information of the nature of the action 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 the Adviser and the Distributor shall
be relieved of liability under this Section 11.2 only to the extent the
indemnifying party is damaged solely by reason of such party's failure to so
notify and failure to notify the Fund, the Adviser and the Distributor of any
such action shall not relieve the Fund, the Adviser and the Distributor from any
liability which it may have to the Indemnified Party against whom such action is
brought otherwise than on account of this Section 11.2. Except as otherwise
provided herein, in case any such action is brought against an Indemnified
Party, the Fund, the Adviser and the Distributor will be entitled to
participate, at its own expense, in the defense of such action and also shall be
entitled to assume the defense thereof (which shall include, without limitation,
the conduct of any ruling request and closing agreement or other settlement
proceeding with the IRS), with counsel approved by the Indemnified Party named
in the action, which approval shall not be unreasonably withheld. After notice
from the Fund, the Adviser and the Distributor to such Indemnified Party of the
election to assume the defense thereof, the Indemnified Party will cooperate
fully with the Fund, the Adviser and the Distributor and shall bear the fees and
expenses of any additional counsel retained by it, and neither the Fund, the
Adviser and the Distributor will be liable to such Indemnified Party under this
Agreement for any legal or other expenses subsequently incurred by such
Indemnified Party independently in connection with the defense thereof, other
than reasonable costs of investigation.
11.3 Effect of Notice
----------------
Any notice given by the indemnifying party to an Indemnified Party
referred to in Sections 11.1(c) or, 11.2(c) above of participation in or control
of any action by the indemnifying party will in no event be deemed to be an
admission by the indemnifying party of liability, culpability or responsibility,
and the indemnifying party will remain free to contest liability with respect to
the claim among the Parties or otherwise.
11.4 Successors
----------
A successor by law of any party shall be entitled to the benefits of
the indemnification contained in this Section 11.
20
11.5 Obligations of the Fund.
-----------------------
All persons dealing with the Fund must look solely to the property of
the applicable Portfolio for the enforcement of any claims against the Fund as
neither the Board, Officers, agents or shareholders assume any personal
liability for obligations entered into on behalf of the Fund.
Section 12. Applicable Law
---------------------------
(a) This Agreement will be construed and the provisions hereof
interpreted under and in accordance with New York law, without regard for that
state's principles of conflict of laws.
(b) This Agreement shall be subject to the provisions of the 1933
Act, 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, the Order) and the terms hereof shall
be interpreted and construed in accordance therewith.
Section 13. Execution in Counterparts
--------------------------------------
This Agreement may be executed simultaneously in two or more
counterparts, each of which taken together with constitute one and the same
instrument.
Section 14. Severability
-------------------------
If any provision of this Agreement is held or made invalid by a court
decision, statute, rule or otherwise, the remainder of this Agreement will not
be affected thereby.
Section 15. Rights Cumulative
------------------------------
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, that the Parties are entitled to under federal and state
laws.
Section 16. Headings
---------------------
The Table of Contents and headings used in this Agreement are for
purposes of reference only and shall not limit or define the meaning of the
provisions of this Agreement.
Section 17. Confidentiality
----------------------------
Subject to the requirements of legal process and regulatory authority,
each party hereto shall treat as confidential the names and addresses of
customers of the other party and all information reasonably identified as
confidential in writing by any other party hereto and, except as permitted by
this Agreement, 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.
21
Notwithstanding the foregoing, the Parties acknowledge and agree that
their rights and obligations under this Agreement are subject to all applicable
federal and state privacy laws, including Title V of the ▇▇▇▇▇-▇▇▇▇▇-▇▇▇▇▇▇ Act
and any implementing rules, regulations and authoritative guidelines of any
applicable regulatory agency thereunder, and any other privacy laws to which the
Parties may be subject. The Parties further agree that no party shall be
obligated to take any action under this Agreement which is prohibited under any
such law, rule regulation or authoritative guideline of any applicable
regulatory agency, and that they shall amend this Agreement to the extent
necessary to comply with such federal and state privacy laws, rules, regulations
or authoritative guidelines of any applicable regulatory agency.
Section 18. Trademarks and Fund Names
--------------------------------------
(a) The Adviser, the Distributor, or their affiliates, own all right,
title and interest in and to the names, trademarks and service marks
"Prudential" and "▇▇▇▇▇▇▇▇" and such other tradenames, trademarks and service
marks as may be identified to LIFE COMPANY from time to time (the " licensed
marks"). Upon termination of this Agreement LIFE COMPANY and its affiliates
shall cease to use the licensed marks, except to the extent required by law or
regulation.
(b) GE Life and Annuity Assurance Company and its affiliates, own all
right, title and interest in and to the tradenames, trademarks and service marks
as may be identified to the Adviser and/or the Fund from time to time (the "Life
Company licensed marks"). Upon termination of this Agreement the Fund, the
Adviser and their affiliates shall cease to use the Life Company licensed marks,
except to the extent required by law or regulation.
Section 19. Parties to Cooperate
---------------------------------
Each party to this Agreement will cooperate with each other party and
all appropriate governmental authorities (including, without limitation, the
SEC, the NASD and state insurance regulators) and will permit each other and
such authorities reasonable access to its books and records (including copies
thereof) in connection with any investigation or inquiry relating to this
Agreement or the transactions contemplated hereby.
22
IN WITNESS WHEREOF, the Parties have caused this Agreement to be
executed in their names and on their behalf by and through their duly authorized
officers signing below.
THE PRUDENTIAL SERIES FUND, INC.
Attest: __________________ By: ______________________________
Name: __________________ Name: ________________________
Title: __________________ Title: _____________________
THE PRUDENTIAL LIFE INSURANCE
COMPANY OF AMERICA
Attest: __________________ By: ______________________________
Name: ____________________ Name: ______________________
Title: __________________ Title: _____________________
THE PRUDENTIAL INVESTMENT MANAGEMENT
SERVICES INC.
Attest: __________________ By: ______________________________
Name: ____________________ Name: ______________________
Title: __________________ Title: _____________________
GE LIFE AND ANNUITY ASSURANCE COMPANY
on behalf of itself and its separate accounts
Attest: __________________ By: ______________________________
Name: __________________ Name: ________________________
Title: __________________ Title:________________________
23
SCHEDULE A
PORTFOLIOS AVAILABLE UNDER THE CONTRACTS
----------------------------------------
SP Prudential US Emerging Growth Portfolio II
Prudential ▇▇▇▇▇▇▇▇ Portfolio II
Prudential Equity Portfolio II
▇▇ ▇▇▇▇▇▇▇▇ International Growth Portfolio II
SEPARATE ACCOUNTS UTILIZING THE FUNDS
-------------------------------------
GE Life & Annuity Separate Account 4
CONTRACTS FUNDED BY THE SEPARATE ACCOUNTS
-----------------------------------------
GE Extra (version incorporating Prudential Funds)
24