EXHIBIT h(5(I)
FORM OF FUND PARTICIPATION AGREEMENT
THIS AGREEMENT is entered into as of this 2nd day of September, 2003
among GOLDEN AMERICAN LIFE INSURANCE COMPANY, a life insurance company organized
under the laws of the State of Delaware and RELIASTAR LIFE INSURANCE COMPANY OF
NEW YORK, a life insurance company organized under the laws of the State of New
York (individually and together, the "Insurance Company"), each on behalf of
itself and certain of its separate accounts (each, an "Account"), as listed in
Appendix B to this Agreement, as such Appendix may be amended from time to time
by mutual agreement in writing; ING INVESTORS TRUST (the "Trust"), an open-end
management investment company that is a business trust organized under the laws
of the Commonwealth of Massachusetts; ING INVESTMENTS, LLC ("ING"), a limited
liability company organized under the laws of the state of Delaware; Directed
Services, Inc. ("DSI"), a broker-dealer and registered investment adviser
organized under the laws of the state of Delaware, which serves as the Trust's
distributor; AMERICAN FUNDS INSURANCE SERIES ("Series"), an open-end management
investment company organized under the laws of the Commonwealth of
Massachusetts; and CAPITAL RESEARCH AND MANAGEMENT COMPANY ("CRMC"), a
corporation organized under the laws of the State of Delaware.
WITNESSETH:
WHEREAS, Insurance Company has issued or proposes to issue to the
public, now and in the future, certain multi-manager variable annuity contracts
(the "Contracts") as set forth in Appendix A to this Agreement, as such Appendix
may be amended from time to time by mutual agreement in writing;
WHEREAS, Insurance Company has established one or more Accounts, as set
forth in Appendix B, under applicable state insurance law, for purposes of
funding the Contracts and has or will register each Account with the United
States Securities and Exchange Commission (the "Commission") as a unit
investment trust under the Securities Act of 1933 (the "1933 Act") and the
Investment Company Act of 1940 (the "1940 Act") (unless the Account is exempt
from such registration);
WHEREAS, the Contracts, which are or will be registered by Insurance
Company with the Commission for offer and sale (unless the Contract is exempt
from such registration), will be in compliance with all applicable laws prior to
being offered for sale;
WHEREAS, the Series has received a "Mixed and Shared Funding Order"
from the Commission granting relief from certain provisions of the 1940 Act and
the rules thereunder to the extent necessary to permit shares of the Series to
be sold to variable annuity and life insurance separate accounts of unaffiliated
insurance companies;
WHEREAS, the Series is divided into various series (the "Master
Funds"), and each Master Fund has its own assets and liabilities and invests in
securities in accordance with its investment objectives and policies, as
described in the registration statement for the Master Funds;
WHEREAS, the Trust is divided into various series (the "Portfolios"),
and each Portfolio
has its own assets and liabilities and invests in securities in accordance with
its investment objectives and policies, as described in the registration
statement for the Portfolios;
WHEREAS, certain Portfolios propose to hold as their only investment
shares of a corresponding Master Fund as set forth in Appendix C, as such
Appendix may be amended from time to time by mutual agreement in writing;
WHEREAS, certain Master Funds (through the Portfolios) will serve as
the underlying investments for the Contracts as set forth in Appendix A to this
Agreement, as such Appendix may be amended from time to time by mutual agreement
in writing;
WHEREAS, CRMC is the investment adviser for the Master Funds; and
WHEREAS, ING is the investment adviser for the Portfolios.
NOW, THEREFORE, in consideration of the foregoing and of mutual
covenants and conditions set forth herein and for other good and valuable
consideration, Insurance Company, the Trust, ING, DSI, the Series and CRMC
hereby agree as follows:
1. The Series and CRMC each represents and warrants to Insurance
Company, the Trust, ING and DSI that: (a) a registration statement under the
1933 Act and under the 1940 Act with respect to the Series, in the form
previously delivered to Insurance Company and the Trust, and all forms, reports,
proxy statements and other documents required to be filed with the Commission
under the 1933 Act, the Securities Exchange Act of 1934 ("1934 Act") and the
1940 Act (collectively, the "SEC Filings") have been filed with the Commission
and copies of any and all amendments thereto will be forwarded to Insurance
Company and the Trust at the time that they are filed with the Commission; (b)
the Series is, and shall be at all times while this Agreement is in force,
lawfully organized and validly existing under the laws of the Commonwealth of
Massachusetts; (c) the Series is and shall remain registered as an open-end
management investment company under the 1940 Act; (d) the SEC Filings (including
the registration statement) conform or, when they become effective, will conform
in all material respects to the requirements of the 1933 Act, the 1940 Act and
the 1934 Act, and the rules and regulations of the Commission thereunder, and
will not contain any untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading; provided, however, that this representation and warranty
shall not apply to any statements or omissions made in reliance upon and in
conformity with information furnished in writing to the Series by Insurance
Company, ING, DSI or the Trust expressly for use therein; and (e) the Series and
CRMC will comply in all material respects with all applicable laws and
regulations, including, without limitation, the 1933 Act and the 1940 Act and
the rules and regulations thereunder. The Series shall register and qualify the
shares of the Master Funds listed on Appendix C for sale in accordance with the
securities laws of the various states only if and to the extent deemed necessary
by the Series.
2. The Trust, ING and DSI each represents and warrants to
Insurance Company, the Series and CRMC that the shares of the Portfolios listed
on Appendix C are or will be registered under the 1933 Act and that the shares
will be issued, sold and distributed in compliance in all material respects with
all applicable federal securities laws. The Trust further represents and
warrants that: (a) the Trust is, and shall be at all times while this Agreement
is in force, lawfully
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organized and validly existing under the laws of the Commonwealth of
Massachusetts; (b) the Trust is and shall remain registered as an open-end
management investment company under the 1940 Act; (c) the SEC Filings (including
the registration statement) of the Trust conform or, when they become effective,
will conform in all material respects to the requirements of the 1933 Act, the
1934 Act and the 1940 Act, and the rules and regulations of the Commission
thereunder, and will not contain any untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary to make the
statements therein not misleading; provided, however, that this representation
and warranty shall not apply to any statements or omissions made in reliance
upon and in conformity with information furnished in writing to the Series by
Insurance Company, CRMC or the Series expressly for use therein; and (e) the
Trust, ING and DSI will comply in all material respects with all applicable laws
and regulations, including, without limitation, the 1933 Act and the 1940 Act
and the rules and regulations thereunder. The Trust shall register and qualify
the shares of the Portfolios listed on Appendix C for sale in accordance with
the securities laws of the various states only if and to the extent deemed
necessary by the Trust.
3. The Series will furnish to Insurance Company and the Trust
such information with respect to the Series in such form and signed by such of
its officers as Insurance Company and/or the Trust may reasonably request, and
will warrant that the statements therein contained when so signed will be true
and correct. The Series will advise Insurance Company and the Trust immediately
of: (a) any non-routine request by the Commission (i) for amendment of the
registration statement relating to the Series, or (ii) for additional
information; (b) the issuance by the Commission of any stop order suspending the
effectiveness of the registration statement of the Series or the initiation of
any proceeding for that purpose; (c) the institution of any proceeding,
investigation or hearing involving the offer or sale of the Contracts or the
Series of which it or CRMC becomes aware; or (d) the happening of any material
event, if known, which makes untrue any statement made in the registration
statement of the Series or which requires the making of a change therein in
order to make any statement made therein not misleading.
4. The Series will make Class 2 shares of the Master Funds listed
on Appendix C available to the Portfolios and will register for sale under the
1933 Act and, if required, under state securities laws, such additional shares
of the Master Funds as may be reasonably necessary for investment by the
Portfolios under this Agreement and maintain a continuous offering of the shares
of the Master Funds. DSI, as the Trust's distributor, will be entitled to a Rule
12b-1 service fee paid by the Series and to be accrued daily and paid monthly at
an annual rate of 0.25% of the average daily net assets of the Class 2 shares of
each Master Fund attributable to the Contracts. DSI may use the fee in
connection with offering shares of the Portfolios to Insurance Company or for
other purposes or services deemed appropriate by DSI, including services for
Contract owners with investments in subaccounts corresponding to the Portfolios
investing in Class 2 shares of each Master Fund (each, a "Subaccount") for as
long as the Series' Class 2 Plan of Distribution pursuant to Rule 12b-1 under
the 1940 Act (the "12b-1 plan") remains in effect and the Portfolios remain
invested in shares of the Master Funds. Master Fund shares to be made available
to the Portfolios shall be sold by the Series and purchased by the Trust for a
given Portfolio at the net asset value of the respective Master Fund (without
the imposition of a sales load) next computed after receipt of each order by the
Series or its designee, as established in accordance with the provisions of the
then current Prospectus of the Series. For purposes of this Paragraph 4,
Insurance Company shall be a designee of each Master Fund and each Portfolio for
receipt of such orders attributable to the Contracts, and receipt by such
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designee as of 4:00 p.m. Eastern time (or other such time the Boards of Trustees
of the Trust and the Series shall so designate) shall constitute receipt by the
Trust and the Series; provided that the Portfolio and the Master Fund each
receives actual notice of such order by 10:00 a.m. Eastern time on the following
Business Day ("Next Business Day"). "Business Day" shall mean any day on which
the New York Stock Exchange ("NYSE") is open for trading and on which the Series
or Portfolio, as applicable, calculates its net asset value pursuant to the
rules of the Commission. The Series will make shares of the Master Funds
available indefinitely for purchase at the applicable net asset value per share
by the Trust and its Portfolios on those days on which the Series calculates its
net asset value pursuant to the rules of the Commission, and the Series shall
use its best efforts to calculate such net asset value on each day on which the
NYSE is open for trading. The Series shall make the net asset value per share
for each Master Fund available to the Trust on a daily basis as soon as
reasonably practicable after the Series calculates its net asset value per
share, and the Series shall use its best efforts to make such net asset value
per share available by 6:30 p.m. Eastern time. If the Series provides incorrect
net asset values to the Trust with respect to any class of shares of any Master
Fund on any Business Day, the Trust shall be entitled to an adjustment to the
number of shares purchased or redeemed of such class of shares to reflect the
correct net asset value per share. Any error in the calculation or reporting of
net asset values per share, dividends, or capital gain information shall be
reported promptly to the Trust. The Series and CRMC are responsible for
maintaining net asset values for each Master Fund in accordance with the
requirements of the 1940 Act and the Series' then current Prospectus. Shares of
particular Master Funds shall be ordered in such quantities and at such times as
determined by the Trust to be necessary to meet the requirements of the
Portfolios. Payments for shares purchased will be made in federal funds
transmitted by wire on the Next Business Day, and Insurance Company and the
Trust shall each use commercially reasonable efforts to wire (or cause to be
wired) funds to the other, for the purpose of settling net purchase orders or
orders of redemption, by 3:00 p.m. Eastern time on the Next Business Day.
4a. The Series and CRMC agree that total return and yield
performance information of the Series derived from its registration statement
provided by the Series or CRMC may be used by the Trust, DSI or Insurance
Company in connection with the sale of shares of the Portfolios and the
Contracts without prior approval of the Series or CRMC, and the Trust, DSI and
Insurance Company will be responsible for using such information in conformity
with the information provided.
4b. The Series shall provide the Trust and Insurance Company with
at least one hundred twenty (120) days' advance notice, or such lesser time as
may be agreed to by the parties, of any change in the Series' investment
objective, and at least sixty (60) days' advance notice, or such lesser time as
may be agreed to by the parties, of any material change in the Series' principal
investment strategy described in its Prospectus, or any change in the Series'
fiscal year or time for calculating net asset value for purposes of Rule 22c-1.
4c. The Series reserves the right to temporarily suspend or
terminate sales of the Series' shares to the Trust and the Portfolios if such
action is required by law, or if the Board of Trustees of the Series deems it
necessary, appropriate and in the best interests of the Series and its
shareholders or in response to the order of an appropriate regulatory authority.
4d. As of the Effective Date of this Agreement, the Series is
unable to provide pricing information, order execution and wire payment for
purchases and redemptions of Master Fund
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shares through the National Securities Clearing Corporation ("NSCC") and its
subsidiary systems described in Appendix D to this Agreement. The Series agrees
to provide pricing information, order execution and wire payment for purchases
and redemptions of Master Fund Shares through the NSCC and its subsidiary
systems pursuant to Appendix D to this Agreement, as such Appendix may be
amended from time to time by mutual agreement in writing, as soon as it becomes
feasible for the Series to do so.
5. The Trust will make shares of the Portfolios listed on
Appendix C available to Insurance Company and will register for sale under the
1933 Act and, if required, under state securities laws, such additional shares
of the Portfolios as may reasonably be necessary for use as the funding vehicle
for the Contracts and to maintain a continuous offering of the shares of the
Portfolios.
5a. The Trust reserves the right to temporarily suspend or
terminate sales of the Portfolios' shares to Insurance Company, or purchases of
the Series' shares by the Trust and the Portfolios, if any such action is
required by law, or if the Board of Trustees of the Trust deems it necessary,
appropriate and in the best interest of the Trust and its shareholders
(including Contract owners) or in response to the order of an appropriate
regulatory authority.
6. The Contracts funded through each Account will provide for the
allocation of net amounts among certain Subaccounts for investment in such
shares of the Portfolios as may be offered from time to time in the Contracts.
The selection of the particular Subaccount is to be made by the Contract owner
and such selection may be changed in accordance with the terms of the Contracts.
Insurance Company reserves the right to refuse, to impose limitations on, or to
limit any transaction request if the request would tend to disrupt Contract
administration or is not in the best interest of the Contract owners or an
Account or Subaccount.
7. Transfer of the Series' and the Trust's shares will be by book
entry only. No stock certificates will be issued to the Accounts or Portfolios.
Shares ordered from a particular Master Fund will be recorded by CRMC or the
Series' transfer agent as instructed by the Trust in an appropriate title for
the corresponding Portfolio. Shares ordered from a particular Portfolio will be
recorded by DSI or the Trust's transfer agent as instructed by Insurance Company
in an appropriate title for the corresponding Account or Subaccount.
8. The Series shall furnish notice promptly to the Trust of any
dividend or distribution payable on any shares of the Master Funds held by the
Portfolios. The Trust hereby elects to receive all such dividends and
distributions as are payable on shares of a Master Fund recorded in the title
for the corresponding Portfolio in additional shares of that Master Fund. The
Series shall notify the Trust of the number of shares so issued. The Trust
reserves the right to revoke this election and to receive all such income
dividends and capital gain distributions in cash.
8a. The Trust shall furnish notice promptly to Insurance Company
of any dividend or distribution payable on any shares underlying the Portfolios.
Insurance Company hereby elects to receive all such dividends and distributions
as are payable on shares of a Portfolio recorded in the title for the
corresponding Subaccount in additional shares of that Portfolio. The Trust shall
notify Insurance Company of the number of shares so issued. Insurance Company
reserves the right to revoke this election and to receive all such income
dividends and capital gain
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distributions in cash.
9. The Series shall effect redemptions of interests in the Master
Funds in accordance with the terms of the Master Funds' then current Prospectus
and the provisions of the 1940 Act and the rules and regulations thereunder. For
purposes of this Paragraph 9, Insurance Company shall be a designee of each
Portfolio and each Master Fund for receipt of requests for redemption from each
Account, and receipt by such designee by 4:00 p.m. Eastern time (or other such
time the Boards of Trustees of the Trust and the Series shall so designate)
shall constitute receipt by the Trust and the Series; provided that the Trust or
Series each receives actual notice of such request for redemption by 10:00 a.m.
Eastern time on the Next Business Day. Insurance Company shall purchase and
redeem the shares of the Portfolios offered by the then current Prospectus of
the Trust in accordance with the provisions of such Prospectus.
9a. All redemption requests, including any redemption requests
that the Trust receives from an Account which necessitate a redemption request
to the Series and a redemption of a Portfolio's entire interest from a Master
Fund, will be effected in cash at the next determined net asset value after the
redemption request is received, payable in federal funds. The Series will use
its best efforts to settle redemptions on the business day following the receipt
of a redemption request by the Series and if such next business day settlement
is not practicable, then as soon thereafter as practicable, and will immediately
notify the Trust regarding the anticipated settlement date, which shall in all
events be a date permitted under the 1940 Act. The Trust will settle redemptions
immediately upon receipt of proceeds from the Series.
10. The Series shall pay all expenses incidental to its
performance under this Agreement. The Series shall bear the expenses for the
cost of registration of its shares, preparation of Prospectuses and statements
of additional information to be sent to existing Contract owners (upon request
in the case of the statement of additional information), proxy statements and
related materials and annual and semi-annual shareholder reports, the printing
and distribution of such items to each Contract owner who has allocated net
amounts to any Subaccount, the preparation of all statements and notices
required from it by any federal or state law, and taxes on the issue or transfer
of the Series' shares subject to this Agreement. The Series will provide the
Trust and Insurance Company, at least once a year, with enough copies of its
Statement of Additional Information to be able to distribute one to each
Contract owner or prospective Contract owner who requests such Statement of
Additional Information.
11. Insurance Company shall bear the expenses for the cost of
preparation and delivery of the Portfolios and the Master Funds respective
Prospectuses (and supplements thereto) to be sent to prospective Contract
owners. Each of the Trust and the Series shall provide, at its expense and in a
timely manner, such documentation (in camera-ready or other mutually agreeable
form) and other assistance as is reasonably necessary in order for Insurance
Company once each year (or more frequently if the Prospectus for the Series or
the Trust is amended), and twice each year in the case of the annual and
semi-annual shareholder reports, to have the Prospectus or Prospectuses, and the
annual and semi-annual shareholder reports for the Contracts, the Portfolios and
the Master Funds, printed together in one or more documents (such printing to be
done at Insurance Company's expense with respect to prospective investors).
12. Insurance Company represents and warrants to the Trust and the
Series that any information furnished in writing by Insurance Company to the
Trust or the Series for use in the
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registration statements of the Trust and the Series, respectively, will not
result in the registration statement's failing to conform in all respects to the
requirements of the 1933 Act and the 1940 Act and the rules and regulations
thereunder or containing any untrue statement of a material fact or omission to
state a material fact required to be stated therein or necessary to make the
statements therein not misleading.
12a. The Trust represents and warrants to the Series that any
information furnished in writing by the Trust to the Series for use in the
registration statement of the Series will not result in the registration
statement's failing to conform in all respects to the requirements of the 1933
Act and the 1940 Act and the rules and regulations thereunder or containing any
untrue statement of a material fact or omission to state a material fact
required to be state therein or necessary to make the statements therein not
misleading.
12b. The Series represents and warrants to the Trust and Insurance
Company that any information furnished in writing by the Series to the Trust or
Insurance Company for use in the registration statement of the Trust or
Insurance Company will not result in the registration statement's failing to
conform in all respects to the requirements of the 1933 Act and the 1940 Act and
the rules and regulations thereunder or containing any untrue statement of a
material fact or omission to state a material fact required to be stated therein
or necessary to make the statements therein not misleading.
13. Insurance Company, the Trust and their affiliates shall make
no representations concerning the Series' shares except those contained in the
then current Prospectus of the Series, current statement of additional
information of the Series, reports to shareholders, or in such printed
information subsequently issued by the Series or on its behalf by CRMC or
American Funds Distributors, Inc. ("AFD"), including information published on
the Series' or CRMC's internet site, in materials approved by CRMC and AFD or as
otherwise provided in the Business Agreement in effect among Insurance Company,
AFD and CRMC dated as of September 2, 2003.
14. Shares of the Series may be offered to separate accounts of
various insurance companies in addition to Insurance Company and the Trust and
otherwise in accordance with the Mixed and Shared Funding Order. The Series
represents, warrants and covenants that no shares of the Series shall be sold to
the general public or any other person except as permitted for Accounts to be
diversified as required under Section 817 of the Internal Revenue Code of 1986,
as amended, and the regulations thereunder (the "Code"). The Series agrees to
take all steps necessary so that the Master Funds meet the requirements of
Section 817 relating to diversification for variable annuity, endowment and life
insurance contracts. The Series represents that each Master Fund is currently
qualified as a "regulated investment company" ("RIC") under the Code. The Series
also agrees to maintain each Master Fund's qualification as a RIC, and each will
notify Insurance Company and the Trust immediately upon having a basis for
believing that the Series has ceased to so qualify or that the Series might not
so qualify in the future. The Series will provide the Trust with securities
holdings reports for each Master Fund within ten days after each calendar
quarter.
15. The Series and the Trust hereby notify Insurance Company that
it may be appropriate to include in the Prospectus pursuant to which a Contract
is offered disclosure regarding the risks of mixed and shared funding.
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16. The parties to this Agreement recognize that due to
differences in tax treatment or other considerations, the interests of various
Contract owners participating in one or more Portfolios or Master Funds might,
at some time, be in conflict. Each party shall report to each other party any
potential or existing conflict of which it becomes aware. The Boards of Trustees
of the Trust and the Series shall promptly notify Insurance Company of the
existence of irreconcilable material conflict and its implications. If such a
conflict exists, Insurance Company will, at its own expense, take whatever
action deemed necessary in accordance with the mixed and shared funding orders
of or applicable to the Series and the Trust, respectively, to remedy such
conflict; in any case, Contract owners will not be required to bear such
expenses.
17. Insurance Company agrees to indemnify and hold the Trust, ING,
DSI and the Series and any affiliate, control person, shareholder, director,
trustee, officer or employee of the Trust, ING, DSI or the Series (collectively,
"Indemnified Affiliates") harmless against any and all losses, claims, damages,
liabilities or litigation (including legal and other expenses) to which such
Indemnified Affiliate may be subject under any statute, at common law or
otherwise, insofar as such losses, claims, damages, liabilities or expenses (or
actions in respect thereof) or settlements arise as a result of Insurance
Company's: (a) making untrue statements of material facts or omitting material
facts in a Contract's registration statement, Prospectus, statement of
additional information, private placement memorandum or other disclosure
documents, semi-annual or annual reports to Contract owners and sales literature
for the Contracts; (b) making untrue statements of material facts that an
Indemnified Affiliate includes in its materials, provided that the Indemnified
Affiliate relies on information supplied by Insurance Company; (c) unlawful
conduct, bad faith, willful malfeasance, or gross negligence by Insurance
Company with respect to the sale of the Contracts or Portfolio or Master Fund
shares; or (d) breaching this Agreement or a representation or warranty
contained in this Agreement.
17a. ING and DSI (as between them, in relation to each party's
responsibilities under this Agreement), each on behalf of itself and the Trust,
agrees to indemnify and hold Insurance Company, the Trust, the Series and any
affiliate, control person, shareholder, director, trustee, officer or employee
of Insurance Company, the Trust or the Series (collectively, "Registered
Affiliates") harmless against any and all losses, claims, damages, liabilities
or litigation (including legal and other expenses) to which such Registered
Affiliate may be subject under any statute, at common law or otherwise, insofar
as such losses, claims, damages, liabilities or expenses (or actions in respect
thereof) or settlements arise as a result of the Trust's, ING's or DSI's: (a)
making untrue statements of material facts or omitting material facts in the
Trust's registration statement, Prospectuses or statements of additional
information, semi-annual and annual reports to shareholders, and sales
literature; (b) making untrue statements of material facts that a Registered
Affiliate includes in its materials, provided such Registered Affiliate relies
on information supplied by ING or DSI; (c) unlawful conduct, bad faith, willful
malfeasance, or gross negligence by the Trust, ING or DSI with respect to the
sale of the Contracts or Portfolio shares or the operation of the Trust or a
Portfolio; (d) failure of a Portfolio to comply with any of its investment
objectives, policies and restrictions; or (e) breaching this Agreement or a
representation or warranty contained in this Agreement.
17b. The Series and CRMC each agrees to indemnify and hold
Insurance Company, the Trust, ING and DSI and any affiliate, control person,
shareholder, director, trustee, officer or employee of Insurance Company, the
Trust, ING or DSI (collectively, "Insurance Company
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Affiliates") harmless against any and all losses, claims, damages, liabilities
or litigation (including legal and other expenses) to which such Insurance
Company Affiliate may be subject under any statute, at common law or otherwise,
insofar as such losses, claims, damages, liabilities or expenses (or actions in
respect thereof) or settlements arise as a result of the Series' or CRMC's: (a)
making untrue statements of material facts or omitting material facts in the
Series' registration statement, Prospectuses or statements of additional
information, semi-annual and annual reports to shareholders, and sales
literature; (b) making untrue statements of material facts that an Insurance
Company Affiliate includes in its materials, provided such Insurance Company
Affiliate relies on information supplied by the Series or CRMC; (c) unlawful
conduct, bad faith, willful malfeasance, or gross negligence by the Series or
CRMC with respect to the sale of the Contracts or Master Fund shares or the
operation of the Series or a Master Fund; (d) failure of a Master Fund to comply
with any of its investment objectives, policies and restrictions; or (e)
breaching this Agreement or a representation or warranty contained in this
Agreement.
18. Insurance Company shall be responsible for assuring that the
Account calculates pass-through voting privileges of Contract owners in a manner
consistent with the method of calculating pass-through voting privileges set
forth in the then current Prospectus or private placement memorandum for the
Contract and the mixed and shared funding orders of or applicable to the Trust
and the Series.
19. Each party hereto shall cooperate with each other party and
all appropriate governmental authorities (including, but not limited to, the
Commission, the NASD and state insurance regulators) and shall permit such
authorities reasonable access to its books and records in connection with any
investigation or inquiry relating to this Agreement or the transactions
contemplated hereby.
20. The parties understand that there is no intention to create a
joint venture in the subject matter of this Agreement. Accordingly, the right to
terminate this Agreement and to engage in any activity not inconsistent with
this Agreement is absolute. This Agreement will terminate:
(a) by mutual agreement at any time;
(b) by any party at any time upon sixty (60) days' written notice
to the other parties;
(c) at the option of Insurance Company, the Trust, CRMC or the
Series upon ten calendar days' prior written notice to the
other parties if a final non-appealable administrative or
judicial decision is entered against another party which has a
material impact on the Contracts;
(d) at the option of Insurance Company or the Trust, immediately
upon written notice, if shares of the Series are not
reasonably available for investment by the Portfolios;
(e) at the option of Insurance Company or the Trust, immediately
upon written notice, if the Series or a Master Fund fails to
meet the requirements for either diversification under Section
817 or RIC status under the Code, or if the Board of the
Series terminates the 12b-1 plan;
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(f) at the option of Insurance Company, the Trust, CRMC or the
Series in the event the Series' 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 an
underlying investment for the Contracts issued or to be issued
by Insurance Company (in such event prompt notice shall be
given by Insurance Company, the Trust, CRMC or the Series to
the other parties);
(g) at Insurance Company's option by written notice to the Series
and/or CRMC if Insurance Company shall determine in its sole
judgment exercised in good faith, that either the Series or
CRMC 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
(h) with respect to each Insurance Company, at the option of the
Series or CRMC by written notice to Insurance Company if the
Series or CRMC shall determine in its sole judgment exercised
in good faith, that Insurance Company 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.
The effective date for termination pursuant to any notice given under
this Paragraph shall be calculated beginning with the date of receipt of such
notice.
21. All notices, consents, waivers, and other communications under
this Agreement must be in writing, and will be deemed to have been duly
received: (a) when delivered by hand (with written confirmation of receipt); (b)
when sent by facsimile (with written confirmation of receipt), provided that a
copy is mailed by registered mail, return receipt requested; or (c) the day
after it is sent by a nationally recognized overnight delivery service, in each
case to the appropriate addresses and facsimile numbers set forth below (or to
such other addresses and facsimile numbers as a party may designate by notice to
the other parties):
IF TO INSURANCE COMPANY:
Golden American Life Insurance Company
ReliaStar Life Insurance Company of New York
U.S. Legal Services
0000 Xxxxxxxx Xxxxx
Xxxx Xxxxxxx, XX 00000
Attention: Xxxxx X. Xxxxxx, Counsel
Facsimile No.: 000-000-0000
WITH A COPY TO:
ING Investment Funds
000 Xxxxxxx Xxxxxx
Xxx Xxxx, XX 00000
Attention: Xxxx Xxxxxxxxx, Head of Outside Funds
10
IF TO THE TRUST:
ING Investors Trust
0000 Xxxx Xxxxxxxxxx Xxxxx Xxxx
Xxxxxxxxxx, XX 00000-0000
Attention: Xxxxxx X. Naka, Senior Vice President
IF TO ING:
ING Investments, LLC
0000 Xxxx Xxxxxxxxxx Xxxxx Xxxx
Xxxxxxxxxx, XX 00000-0000
Attention: Xxxxxxx X. Xxxxxx, Executive Vice President
IF TO DSI:
Directed Services, Inc.
0000 Xxxxxxxx Xxxxx
Xxxx Xxxxxxx, XX 00000
Attention: Xxxxx X. Xxxxxxxx, Vice President
IF TO THE SERIES:
American Funds Insurance Series
000 X. Xxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxxxxx, Xxxxxxxxxx 00000
Attention: Xxxxxxx X. Xxxxxx, Senior Vice President
Facsimile No.: (000) 000-0000
WITH A COPY TO:
Capital Research and Management Company
000 X. Xxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxxxxx, Xxxxxxxxxx 00000
Attention: Xxxxxxx X. Xxxxxxxxxx, Vice President and Senior Counsel,
Fund Business Management Group
Facsimile No.: (000) 000-0000
IF TO CRMC:
Capital Research and Management Company
000 X. Xxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxxxxx, XX 00000
Attention: Xxxxxxx X. Xxxxxx, Senior Vice President and Legal Counsel,
Fund Business Management Group, and Secretary
Facsimile No.: (000) 000-0000
WITH A COPY TO:
Capital Research and Management Company
000 X. Xxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxxxxx, Xxxxxxxxxx 00000
11
Attention: Xxxxxxx X. Xxxxxxxxxx, Vice President and Senior Counsel,
Fund Business Management Group
Facsimile No.: (000) 000-0000
21. If this Agreement terminates, any provision of this Agreement
necessary to the orderly windup of business under it will remain in effect as to
that business, after termination.
22. If this Agreement terminates, the Series and CRMC, at
Insurance Company's option, will continue to make additional shares of the
Master Funds available to the Trust for all existing Contracts as of the
effective date of termination (under the same terms and conditions as were in
effect prior to termination of this Agreement with respect to existing Contract
owners), unless the Series liquidates or applicable laws prohibit further sales.
Insurance Company agrees not to redeem shares of the Trust unless: (a) the
Agreement is terminated pursuant to Paragraph 20(e) or 20(f); (b) legitimately
required to do so according to a Contract owner's request; (c) under an order
from the Commission or pursuant to exemptive relief granted by the Commission or
pursuant to a vote of Contract owners; or (d) as otherwise agreed to or
permitted among the parties.
23. The obligations of the Series under this Agreement are not
binding upon any of the Trustees, officers, employees or shareholders (except
CRMC if it is a shareholder) of the Series individually, but bind only the
Series' assets. When seeking satisfaction for any liability of the Series in
respect of this Agreement, Insurance Company, on behalf of itself and the
Accounts, agrees not to seek recourse against said Trustees, officers, employees
or shareholders, or any of them, or any of their personal assets for such
satisfaction. Insurance Company agrees that the obligations of each Master Fund
hereunder shall be several and not joint, in accordance with its proportionate
interest hereunder, and Insurance Company agrees not to proceed against any
Master Fund for the obligations of another Master Fund. Notwithstanding the
foregoing, if Insurance Company seeks satisfaction for any liability of the
Series in respect of this Agreement, Insurance Company (on behalf of itself or
any Account) may seek recourse against CRMC.
23b. The obligations of the Trust under this Agreement are not
binding upon any of the Trustees, officers, employees or shareholders (except
Insurance Company if it is a shareholder), of the Trust individually, but bind
only the Trust's assets. When seeking satisfaction for any liability of the
Trust in respect of this Agreement, Insurance Company, the Series and CRMC agree
not to seek recourse against said Trustees, officers, employees or shareholders,
or any of them, or any of their personal assets for such satisfaction. Insurance
Company, the Series and CRMC also agree that the obligations of each Portfolio
hereunder shall be several and not joint, in accordance with its proportionate
interest hereunder, and the Series and CRMC agree not to proceed against any
Portfolio for the obligations of another Portfolio.
24. This Agreement shall be construed in accordance with the laws
of the Commonwealth of Massachusetts.
25. This Agreement and the parties' rights, duties and obligations
under this Agreement are not transferable or assignable by any of them without
the express, prior written consent of the other parties hereto. Any attempt by a
party to transfer or assign this Agreement or any of its rights, duties or
obligations under this Agreement without such consent is void; provided,
however, that a merger of, reinsurance arrangement by, or change of control of a
party
12
shall not be deemed to be an assignment for purposes of this Agreement.
26. The following Paragraphs shall survive any termination of this
Agreement: 4, 17-17(b), 21-26.
13
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and attested as of the date first above written.
GOLDEN AMERICAN LIFE INSURANCE
COMPANY (ON BEHALF OF ITSELF AND EACH
ACCOUNT)
Attest: ____________________________________________
Xxxxx X. Xxxxxxxx
___________________________ Vice President
RELIASTAR LIFE INSURANCE COMPANY
OF NEW YORK (ON BEHALF OF ITSELF AND EACH
ACCOUNT)
Attest: ____________________________________________
Xxxxx X. Xxxxxxxx
____________________________ Vice President
AMERICAN FUNDS INSURANCE SERIES
Attest:
____________________________________________
___________________________ By:
Its:
14
CAPITAL RESEARCH AND MANAGEMENT
COMPANY
Attest:
____________________________________________
___________________________ By:
Its:
ING INVESTORS TRUST
Attest: __________________________________________
Xxxxxx X. Naka
___________________________ Senior Vice President
ING INVESTMENTS, LLC
Attest: __________________________________________
Xxxxxxx X. Xxxxxx
___________________________ Executive Vice President
DIRECTED SERVICES, INC.
Attest: __________________________________________
Xxxxx X. Xxxxxxxx
___________________________ Vice President
15
Appendix A - Contracts
Company Contracts
-------------------------------- ----------------------------------
Golden American Life Insurance GoldenSelect Access(R)
Company: GoldenSelect Access One
GoldenSelect DVA Plus(R)
GoldenSelect DVA
GoldenSelect ES II(R)
GoldenSelect Generations,
GoldenSelect Landmark
GoldenSelect Opportunities
GoldenSelect Premium Plus(R)
SmartDesign Advantage
SmartDesign Signature
SmartDesign Variable Annuity
ReliaStar Life Insurance Company GoldenSelect DVA Plus-NY
of New York SmartDesign Variable Annuity - NY
Appendix B - Separate Accounts
Company Separate Account
-------------------------------- ------------------------------------------------
Golden American Life Insurance - Separate Account B
Company:
ReliaStar Life Insurance Company - ReliaStar Life Insurance Company of New York
of New York: Separate Account NY-B
17
Appendix C
PORTFOLIOS AND CORRESPONDING MASTER FUNDS
ING INVESTORS TRUST PORTFOLIOS: AMERICAN FUNDS INSURANCE SERIES MASTER
FUNDS:
- ING American Funds Growth Portfolio - Growth Fund (Class 2 Shares)
- ING American Funds Growth-Income - Growth-Income Fund (Class 2 Shares)
Portfolio
- ING American Funds International - International Fund (Class 2 Shares)
Portfolio
18
Appendix D
Procedures for Pricing and Order/Settlement Through National Securities Clearing
Corporation's Mutual Fund Profile System and Mutual Fund Settlement, Entry and
Registration Verification System.
1. Subject to the provisions of Paragraph 4 of the Participation
Agreement, the parties hereby agree to provide pricing information, execute
orders and wire payments for purchases and redemptions of Master Fund shares
through National Securities Clearing Corporation ("NSCC") and its subsidiary
systems, when it becomes feasible for the Series to do so, as follows:
(a) The Series will furnish to the Trust or its designated
affiliate through NSCC's Mutual Fund Profile System ("MFPS")
(1) the most current net asset value information for each
Master Fund, (2) a schedule of anticipated dividend and
distribution payment dates for each Master Fund, which is
subject to change without prior notice, ordinary income and
capital gain dividend rates on the Master Fund's ex-date, and
(3) in the case of fixed income funds that declare daily
dividends, the daily accrual or the interest rate factor. All
such information shall be furnished to the Trust or its
designated affiliate by 6:30 p.m. Eastern Time on each
Business Day or at such other time as that information becomes
available. Changes in pricing information will be communicated
to NSCC and the Trust
(b) Upon receipt of Master Fund purchase, exchange and redemption
instructions for acceptance as of the time at which a Master
Fund's net asset value is calculated as specified in the
Series' Prospectus ("Close of Trading") on each Business Day
("Instructions"), and upon its determination that there are
good funds with respect to Instructions involving the purchase
of Master Fund shares, the Trust or its designated affiliate
will calculate the net purchase or redemption order for each
Master Fund. Orders for net purchases or net redemptions
derived from Instructions received by the Trust or its
designated affiliate prior to the Close of Trading on any
given Business Day will be sent to the Defined Contribution
Interface of NSCC's Mutual Fund Settlement, Entry and
Registration Verification System ("Fund/SERV") by 5:00 a.m.
Eastern Time on the next Business Day. Subject to the Trust's
or its designated affiliate's compliance with the foregoing,
the Trust or its designated affiliate will be considered the
agent of the Series, and the Business Day on which
Instructions are received by the Trust or its affiliate in
proper form prior to the Close of Trading will be the date as
of which shares of the Master Funds are deemed purchased,
exchanged or redeemed pursuant to such Instructions.
Instructions received in proper form by the Trust or its
designated affiliate after the Close of Trading on any given
Business Day will be treated as if received on the next
following Business Day. Dividends and capital gains
distributions will be automatically reinvested at net asset
value in accordance with the Series' then current
Prospectuses.
(c) The Trust or its designated affiliate will wire payment for
net purchase orders by the Master Fund's NSCC Firm Number, in
immediately available funds, to an NSCC settling bank account
designated by the Trust or its designated affiliate no
19
later than 5:00 p.m. Eastern time on the same Business Day
such purchase orders are communicated to NSCC. For purchases
of shares of daily dividend accrual funds, those shares will
not begin to accrue dividends until the day the payment for
those shares is received.
(d) NSCC will wire payment for net redemption orders by Master
Fund, in immediately available funds, to an NSCC settling bank
account designated by Insurance Company or its designated
affiliate, by 5:00 p.m. Eastern Time on the Business Day such
redemption orders are communicated to NSCC, except as provided
in the Series' then current Prospectus and statement of
additional information.
(e) If the Series does not send a confirmation of the Trust's or
its designated affiliate's purchase or redemption order to
NSCC by the applicable deadline to be included in that
Business Day's payment cycle, payment for such purchases or
redemptions will be made the following Business Day.
(f) If on any day the Trust or its designated affiliate, or the
Series is unable to meet the NSCC deadline for the
transmission of purchase or redemption orders, it may at its
option transmit such orders and make such payments for
purchases and redemptions directly to the Series or the Trust
or its designated affiliate, as applicable, as is otherwise
provided in the Agreement.
(g) These procedures are subject to any additional terms in the
Series' Prospectus and the requirements of applicable law. The
Series reserves the right, at its discretion and without
notice, and subject to the terms and conditions of this
Agreement to suspend the sale of shares or withdraw the sale
of shares of any Master Fund.
2. The Trust or its affiliate, the Series and clearing agents (if
applicable) are each required to have entered into membership agreements with
NSCC and met all requirements to participate in the MFPS and Fund/SERV systems
before these procedures may be utilized. Each party will be bound by the terms
of their membership agreement with NSCC and will perform any and all duties,
functions, procedures and responsibilities assigned to it and as otherwise
established by NSCC applicable to the MFPS and Fund/SERV system and the
Networking Matrix Level utilized.
3. Except as modified hereby, all other terms and conditions of
the Agreement shall remain in full force and effect. Unless otherwise indicated
herein, the terms defined in the Agreement shall have the same meaning as in
this Appendix.
20