EXHIBIT 99h.(iii)
HARTFORD SERIES FUND, INC.
SHARE PURCHASE AGREEMENT
FIRST FORTIS LIFE INSURANCE COMPANY ("First Fortis"), a New York
corporation, as Sponsor-Depositor, now and in the future, of certain separate
accounts ("Separate Accounts"), and issuer of certain variable annuity and
variable life insurance contracts (the "Contracts") issued with respect to such
Separate Accounts hereby agrees as of the 1st day of May 2003 with HARTFORD
SERIES FUND, INC. (the "Fund"), an open-end, diversified, management investment
company, to this Share Purchase Agreement, which contemplates an arrangement
whereby Fund shares shall be made available to serve as the underlying
investment media for the Contracts, subject to the following provisions:
1. Fund shares shall be purchased at the net asset value applicable to
each order as established in accordance with the provisions of the then
currently effective prospectus of the Fund. Fund shares shall be ordered in
such quantity and at such times as determined by First Fortis (or its
successor) to be necessary to meet the requirements of the Contracts.
Confirmations of Fund share purchases will be sent directly to First Fortis
by the Fund. All Fund share purchases shall be maintained in a book share
account in the name of First Fortis. Payment for shares shall be made
directly to the Fund by First Fortis and payment for redemption shall be
made directly to First Fortis by the Fund, all within the applicable time
periods allowed for settlement of securities transactions. If payment is
not received by the Fund within such period, the Fund may, without notice,
cancel the order and hold First Fortis responsible for any loss suffered by
the Fund resulting from such failure to receive timely payment.
Notice shall be furnished promptly to First Fortis by the Fund of any
dividend or distribution payable on Fund shares.
2. (a) The Fund represents that its shares are registered under the
Securities Act of 1933, as amended, and that all appropriate federal and
state registration provisions have been complied with as to such shares and
that such shares may properly be made available for the purposes of this
Agreement. The Fund shall bear the cost of any such registration, as well
as the expense of any taxes assessed upon the issuance or transfer of Fund
shares pursuant to this Agreement.
(b) The Fund shall supply to First Fortis, in a timely manner and in a
sufficient number to allow distribution by First Fortis to each owner of or
participant under a Contract (i) annual and semiannual reports of the
Fund's condition, and (ii) any other Fund shareholder notice, report or
document required by law to be delivered to shareholders. The Fund shall
bear the cost of preparing and supplying the foregoing materials and the
cost of any distribution thereof.
(c) First Fortis represents that it has registered or will register
under the Securities Act of 1933, as amended and the Investment Company Act
of 1940, as amended (the "1940 Act"), unless exempt from such registration,
the Contracts. First Fortis will maintain such registrations to the extent
required by law. The Contracts will be issued in compliance with all
applicable federal and state laws and regulations.
(d) First Fortis has legally and validly established each Separate
Account prior to any issuance or sale as a segregated asset account under
the New York Insurance Code and has registered or, prior to any issuance or
sale of the Contracts, will register and will maintain the registration of,
each Separate Account as a unit investment trust in accordance with the
1940 Act, unless exempt from such registration.
3. First Fortis shall not make any representation concerning Fund shares
except those contained in the then current prospectus of the Fund and in
printed information subsequently issued by the Fund as information
supplemental to the prospectus.
4. This Agreement shall terminate as to new Contracts:
(a) At the option of First Fortis or the Fund upon six months' advance
notice to the other;
(b) At the option of First Fortis if Fund shares are not available for any
reason to meet the requirements of the Contracts but then only as to those
new Contracts, the terms of which require the periodic payments to be
invested in whole or in part in that particular Series;
(c) At the option of First Fortis, upon institution of formal proceedings
against the Fund by the Securities and Exchange Commission or any other
regulatory body;
(d) Upon assignment of this Agreement, unless made with the written consent
of the other party to this Agreement;
(e) If Fund shares are not registered, issued or sold in conformance with
applicable federal or state law or if such laws preclude the use of Fund
shares as the underlying investment media of the Contracts. Prompt notice
shall be given to First Fortis in the event the conditions of this
provision occur.
Notice of termination hereunder shall be given promptly by the party
desiring to terminate to the other party to this Agreement.
5. Termination as the result of any cause listed in the preceding
paragraph shall not affect the Fund's obligation to furnish Fund shares in
connection with Contracts then in force for which the shares of the Fund
serve or may serve as the underlying investment media, unless further sale
of Fund shares is proscribed by
the Securities and Exchange Commission or other regulatory body, or if Fund
shares of the requisite Series are no longer available.
6. This Agreement shall supersede any prior agreement between the parties
hereto relating to the same subject matter.
7. Each notice required by this Agreement shall be given in writing as
follows:
IF TO THE FUND:
Hartford Series Fund, Inc.
X.X. Xxx 0000
Xxxxxxxx, Xxxxxxxxxxx 00000-0000
Attn: Counsel to the Fund
IF TO FIRST FORTIS:
First Fortis Life Insurance Company
One Chase Xxxxxxxxx Xxxxx
00xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attn: Fortis, Inc.
General Counsel
8. This Agreement shall be construed in accordance with the laws of the
State of Connecticut.
9. (a) First Fortis will report to the Board of Directors of the Fund
(the "Board") any potential or existing material irreconcilable conflict,
of which it is aware, between and among the interests of the contract
owners of all separate accounts investing in the series of the Fund (the
"Series") and of the participants of qualified pension or retirement plans
investing in the Series and will assist the Board in carrying out the
Board's responsibility of monitoring the Series for the existence of any
material irreconcilable conflict by providing the Board with all
information reasonably necessary for the Board to consider the issue
raised. This includes, but is not limited to, an obligation by First Fortis
to inform the Board whenever Contract owner voting instructions are
disregarded.
(b) If it is determined by a majority of the Board, or a majority of
its independent Directors, that a material irreconcilable conflict exists
due to issues relating to the Contracts, First Fortis will, at its expense,
to the extent reasonably practicable and with a view only to the interests
of Contract owners, take whatever steps it can which are necessary to
remedy or eliminate the irreconcilable material conflict, including,
without limitation, withdrawal of the affected Separate Account's
investment in the Series. No charge or penalty will be imposed as a result
of such withdrawal.
(c) First Fortis, at the request of the Series' adviser will, at least
annually, or more frequently if deemed appropriate by the Board, submit to
the Board such reports, materials or data as the Board may reasonably
request so that the Board may fully carry out the obligations imposed upon
them.
10. The Fund will provide First Fortis with copies of its proxy solicitations
applicable to the Series. First Fortis will, to the extent required by law, (a)
distribute proxy materials applicable to the Series to eligible Contract owners;
(b) solicit voting instructions from eligible Contract owners; (c) vote the
Series shares in accordance with instructions received from Contract owners; (d)
if required by law, vote Series shares for which no instructions have been
received in the same proportion as shares of the Series for which instructions
have been received; and (e) calculate voting privileges in a manner consistent
with other life insurance companies to whose separate accounts Series shares are
offered. Unregistered separate accounts subject to the Employee Retirement
Income Security Act of 1974 ("ERISA") will refrain from voting shares for which
no instructions are received if such shares are held subject to the provisions
of ERISA.
Dated: May 1, 2003
HARTFORD SERIES FUND, INC.
By: /s/ Xxxxx Xxxx
---------------------------------
Xxxxx Xxxx
Secretary and Vice President
FIRST FORTIS LIFE INSURANCE COMPANY
By: /s/ Xxxxxxx Xxxx
---------------------------------
Vice President, Law
