Common use of DIVERSIFICATION AND RELATED LIMITATIONS Clause in Contracts

DIVERSIFICATION AND RELATED LIMITATIONS. 6.1. The Trust and MFS represent and warrant that each Portfolio of the Trust will meet the diversification requirements of Section 817 (h) (1) of the Code and Treas. Reg. 1.817-5, relating to the diversification requirements for variable annuity, endowment, or life insurance contracts, as they may be amended from time to time (and any revenue rulings, revenue procedures, notices, and other published announcements of the Internal Revenue Service interpreting these sections), as if those requirements applied directly to each such Portfolio. In the event of a breach of this representation and warranty by the Trust and/or MFS, they will take all reasonable steps to: (a) notify the Company of such breach; and (b) adequately diversify the Trust so as to achieve compliance within the grace period afforded by Treasury Regulation 1.817.5.

DIVERSIFICATION AND RELATED LIMITATIONS. 6.1. The Trust and MFS represent and warrant that each Portfolio of the Trust will meet the diversification requirements of Section 817 (h) (1817(h)(1) of the Code and Treas. Reg. 1.817-5, relating to the diversification requirements for variable annuity, endowment, or life insurance contracts, as they may be amended from time to time (and any revenue rulings, revenue procedures, notices, and other published announcements of the Internal Revenue Service interpreting these sections), as if those requirements applied directly to each such Portfolio. In the event of a breach of this representation and warranty by the Trust and/or MFS, they will take all reasonable steps to: (a) notify the Company of such breach; and (b) adequately diversify the Trust so as to achieve compliance within the grace period afforded by Treasury Regulation 1.817.5.