Common use of Excessive Trading Clause in Contracts

Excessive Trading. (a) The Parties acknowledge and agree that excessive trading can disrupt management of the Fund and raise its expenses. In particular, the Funds may have difficulty implementing their long-term investment strategies if they are forced to maintain a higher level of their assets in cash to accommodate significant short-term trading activity resulting from market timing. A Fund may bear increased administrative costs due to asset level and investment volatility that accompanies patterns of short-term trading activity. SMFI has adopted policies to discourage excessive trading of the Funds' shares. SMFI defines "excessive trading" in the Fund prospectus. (b) LIFE COMPANY represents and warrants that the Contracts to be funded by investments of the Accounts in one or more of the Funds contain provisions permitting LIFE COMPANY to restrict excessive or potentially abusive transfers in at least one of the following ways: o Limitations on the ability to have exchanges effected other than by mail in the event of excessive or abusive transfers; o Limitations on transfers into any investment option within 60 days of having transferred out of it (other than in connection with an automatic transfer program); o Limitations on any transfers among sub-accounts within 60 days of prior transfer (other than in connection with an automatic transfer program); or o Limitations on any transfers on a day when net transfers into or out of a sub-account would have the effect of increasing or reducing the assets of the Fund by more than 1% without the express permission of the adviser to that Fund. LIFE COMPANY also represents and warrants that the Contract prospectuses contain language describing its policies regarding excessive trading. (d) SMFI will monitor daily trading activities of each Fund for excessive trading or potentially abusive exchanges. LIFE COMPANY agrees that it will use reasonable efforts to implement the market timing policies set forth in each Contract's prospectus and the market timing policies set forth in each Fund's prospectus. Notwithstanding the foregoing, SMFI acknowledges and agrees that LIFE COMPANY may not be able to detect every instance of market timing and may not be able to eliminate market timing in the Funds, but Life COMPANY agrees to notify SMFI of each instance that it does detect such market timing. (e) SMFI will notify LIFE COMPANY if it detects such trading or exchanges from LIFE COMPANY'S Accounts. Upon notification from SMFI, LIFE COMPANY will use its best efforts to exercise its rights under the Contracts to impose limitations in a way that stops excessive or potentially abusive exchanges by one or a group of investors consistent with the Contracts' market timing policies and procedures as reflected in the Contracts' prospectuses.

Excessive Trading. (a) The Parties acknowledge and agree that excessive trading can disrupt management of the Fund a Portfolio and raise its expenses. In particular, the Funds a Portfolio may have difficulty implementing their its long-term investment strategies if they are it is forced to maintain a higher level of their its assets in cash to accommodate significant short-term trading activity resulting from market timing. A Fund Portfolio may bear increased administrative costs due to asset level and investment volatility that accompanies patterns of short-term trading activity. SMFI Each Fund has adopted policies to discourage excessive trading of the Funds' sharesPortfolio Shares. SMFI Each Fund defines "“excessive trading" ” in the Fund prospectusPortfolio Prospectus. (b) LIFE COMPANY represents and warrants that the Contracts to be funded by investments of the Accounts in one or more of the Funds Portfolios contain provisions permitting LIFE COMPANY to restrict excessive or potentially abusive transfers in at least one of the following ways: o • Limitations on the ability to have exchanges effected other than by mail in the event of excessive or abusive transfers; o • Limitations on transfers into any investment option within 60 30 days of having transferred out of it (other than in connection with an automatic transfer program); o • Limitations on any transfers among sub-accounts within 60 30 days of prior transfer (other than in connection with an automatic transfer program); or o • Limitations on any transfers on a day when net transfers into or out of a sub-account would have the effect of increasing or reducing the assets of the Fund affected Portfolio by more than 1% without the express permission of the adviser to that FundPortfolio. LIFE COMPANY also represents and warrants that the Contract prospectuses contain language describing its policies regarding excessive trading. (d) SMFI CID will monitor daily trading activities of each Fund Portfolio for excessive trading or potentially abusive exchanges. LIFE COMPANY agrees that it will use reasonable efforts to implement the market timing policies set forth in each Contract's prospectus Account Prospectus and the market timing policies set forth in each Fund's prospectusPortfolio Prospectus. Notwithstanding the foregoing, SMFI each Fund acknowledges and agrees that LIFE COMPANY may not be able to detect every instance of market timing and may not be able to eliminate market timing in the FundsPortfolios, but Life LIFE COMPANY agrees to notify SMFI such Fund of each instance of market timing that it does detect such market timingdetect. (e) SMFI will notify LIFE COMPANY if it detects such trading or exchanges from LIFE COMPANY'S Accounts. Upon notification from SMFI, LIFE COMPANY will use its best efforts to exercise its rights under the Contracts to impose limitations in a way that stops excessive or potentially abusive exchanges by one or a group of investors consistent with the Contracts' market timing policies and procedures as reflected in the Contracts' prospectuses.

Excessive Trading. (a) The Parties acknowledge and agree that excessive trading can disrupt management of the Fund a Portfolio and raise its expenses. In particular, the Funds a Portfolio may have difficulty implementing their its long-term investment strategies if they are it is forced to maintain a higher level of their its assets in cash to accommodate significant short-term trading activity resulting from market timingexcessive trading. A Fund Portfolio may bear increased administrative costs due to asset level and investment volatility that accompanies patterns of short-term trading activity. SMFI has The FUNDS have adopted policies to discourage excessive trading of the FundsPortfolios' shares. SMFI defines The FUNDS define "excessive trading" in the Fund prospectusFUND Prospectuses. (b) LIFE COMPANY represents COMPANIES represent and warrants warrant that the Contracts to be funded by investments of the Accounts in one or more of the Funds Portfolios contain provisions in the Contract Prospectuses (where such prospectuses are required by law) permitting LIFE COMPANY COMPANIES to restrict excessive or potentially abusive transfers in at least one of the following ways: o Limitations on the ability to have exchanges effected other than by mail in the event of excessive or abusive transfers; o Limitations on transfers into any investment option within 30 days (60 days for Participating Plans) of having transferred out of it (other than in connection with an automatic transfer program); o Limitations on any transfers among sub-accounts within 30 days (60 days for Participating Plans) of prior transfer (other than in connection with an automatic transfer program); or o Limitations on any transfers on a day when net transfers into or out of a sub-account would have the effect of increasing or reducing the assets of the Fund affected Portfolio by more than 1% without the express permission of the adviser to that Fund. Portfolio. (c) LIFE COMPANY COMPANIES also represents represent and warrants warrant that the Contract Prospectuses (where such prospectuses are required by law) contain language describing its policies regarding excessive trading. (d) SMFI CDI will monitor daily trading activities of each Fund Portfolio for excessive trading or potentially abusive exchanges. LIFE COMPANY agrees COMPANIES agree that it they will use reasonable efforts to implement the market timing excessive trading policies set forth in each Contract's prospectus and the market timing policies set forth Contract Prospectus and/or in each Fund's prospectusFUND'S Prospectus. Notwithstanding the foregoing, SMFI acknowledges the FUNDS and agrees CDI acknowledge and agree that LIFE COMPANY COMPANIES may not be able to detect every instance of market timing excessive trading and may not be able to eliminate market timing excessive trading in the FundsPortfolios, but Life COMPANY agrees COMPANIES agree to notify SMFI the FUNDS and CDI of each instance that it does detect such market timingexcessive trading. (e) SMFI The FUNDS or CDI will notify LIFE COMPANY COMPANIES if it detects such trading or exchanges from is detected in LIFE COMPANY'S COMPANIES' Accounts. Upon notification from SMFIthe FUNDS or CDI, an affected LIFE COMPANY will use its best efforts to exercise its rights under the Contracts to impose limitations in a way that stops excessive or potentially abusive exchanges trading by one or a group of investors consistent with the Contracts' market timing excessive trading policies and procedures as reflected in the Contracts' prospectusesContract Prospectuses (where such prospectuses are required by law). (f) LIFE COMPANIES and CDI hereby acknowledge that CDI has executed a Rule 22c-2 Agreement with each LIFE COMPANY (each a "Rule 22c-2 Agreement"), each of which is incorporated herein by reference and made part of this Agreement to the same extent as if set forth herein. To the extent of any conflict between this Agreement and a Rule 22c-2 Agreement, the Rule 22c-2 Agreement shall control.