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EXHIBIT 4.10
DCP CONTRACT, FORM P-12518
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CONTRACT NUMBER GA XX,XXX
CONTRACTHOLDER ABC Company
DATE OF ISSUE January 1, 1990
CONTRACT DATE January 1, 1990
FIRST CONTRACT ANNIVERSARY January 1, 1991
American United Life Insurance Company (AUL) shall provide all the rights and
benefits of this contract.
This contract is issued in consideration of the application and of the payment
of Contributions to AUL.
All provisions and conditions stated on this and subsequent pages are made a
part of this contract.
Signed for AUL at its Home Office in Indianapolis, Indiana.
NOTICE OF TEN DAY RIGHT TO EXAMINE CONTRACT
Please read this contract carefully. The Contractholder may return the contract
for any reason within ten days after receiving it. If returned, the contract
shall be considered void from the beginning and any Contributions shall be
refunded.
AMERICAN UNITED LIFE INSURANCE COMPANY
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Chairman of the Board,
President, & Chief Executive Officer
Attest
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Secretary
AUL American Series Contract
DCP Multiple-Fund Group Variable Annuity
Nonparticipating
THE ASSETS HELD IN ANY INVESTMENT ACCOUNT FOR WHICH THIS CONTRACT MAKES
PROVISION MAY INCREASE OR DECREASE IN DOLLAR VALUE ACCORDING TO THE INVESTMENT
PERFORMANCE OF THE CORRESPONDING PORTFOLIO OF THE MUTUAL FUND IN WHICH THE
INVESTMENT ACCOUNT INVESTS. THE VALUE OF SUCH ASSETS IS NOT GUARANTEED. ARTICLE
5 OF THIS CONTRACT EXPLAINS THE VALUATION OF SUCH ASSETS.
P-12518
CONTRACT NUMBER GA XX,XXX
CONTRACTHOLDER TWO-LINE NAME
DATE OF ISSUE January 1, 1990
CONTRACT DATE January 1, 1990
FIRST CONTRACT ANNIVERSARY January 1, 1991
American United Life Insurance Company (AUL) shall provide all the rights and
benefits of this contract.
This contract is issued in consideration of the application and of the payment
of Contributions to AUL.
All provisions and conditions stated on this and subsequent pages are made a
part of this contract.
Signed for AUL at its Home Office in Indianapolis, Indiana.
NOTICE OF TEN DAY RIGHT TO EXAMINE CONTRACT
Please read this contract carefully. The Contractholder may return the contract
for any reason within ten days after receiving it. If returned, the contract
shall be considered void from the beginning and any Contributions shall be
refunded.
AMERICAN UNITED LIFE INSURANCE COMPANY
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Chairman of the Board,
President, & Chief Executive Officer
Attest
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Secretary
AUL American Series Contract
DCP Multiple-Fund Group Variable Annuity
Nonparticipating
THE ASSETS HELD IN ANY INVESTMENT ACCOUNT FOR WHICH THIS CONTRACT MAKES
PROVISION MAY INCREASE OR DECREASE IN DOLLAR VALUE ACCORDING TO THE INVESTMENT
PERFORMANCE OF THE CORRESPONDING PORTFOLIO OF THE MUTUAL FUND IN WHICH THE
INVESTMENT ACCOUNT INVESTS. THE VALUE OF SUCH ASSETS IS NOT GUARANTEED. ARTICLE
5 OF THIS CONTRACT EXPLAINS THE VALUATION OF SUCH ASSETS.
P-12518
TABLE OF CONTENTS
ARTICLE 1 DEFINITIONS
ARTICLE 2 CONTRACT AND AUTHORITY
2.1---------------Entire Contract
2.2---------------Authority
ARTICLE 3 CONTRIBUTIONS, INVESTMENTS, AND TRANSFERS
3.1---------------Amount of Contributions
3.2---------------How Contributions Are Handled
3.3---------------Addition, Deletion, or Substitution of Investments
3.4---------------Transfers
3.5---------------Limitations on Transfers
ARTICLE 4 BENEFITS
4.1----------------Election of Annuity Options
4.2----------------Annuity Options
4.3----------------Guaranteed Rate of Interest
4.4----------------Alternate Nonparticipating Retirement Annuity
4.5----------------Minimum Payments
4.6----------------Due Proof of Date of Birth and Survival
4.7----------------Death Benefits
4.8----------------Withdrawal Benefits
ARTICLE 5 VALUATIONS
5.1----------------Time of Valuation
5.2----------------Accumulation Units
5.3----------------Value of Accumulation Units
5.4----------------Determining the Net Investment Factor
5.5----------------Determining the Value of Each Participant
Account's Share of Any Investment Account
ARTICLE 6 OTHER CHARGES
6.1----------------Mortality Risk and Expense Risk Charges
6.2----------------Investment Management Charge
6.3----------------Administrative Charge
6.4----------------Transfer Charge
6.5----------------Other Charges
6.6----------------Reduction or Waiver of Certain Charges
P-12518.1
ARTICLE 7 RIGHT OF AUL TO CHANGE CERTAIN PROVISIONS
7.1----------------Right of AUL to Change Interest Rates
7.2----------------Right of AUL to Change Annuity Table
7.3----------------Right of AUL to Change Charges
7.4----------------Amendment of Contract to Conform with Law
ARTICLE 8 TERMINATION OF CONTRACT
8.1----------------Right of Contractholder to Terminate
8.2----------------Payment Due to Termination by Contractholder
8.3----------------Right of AUL to Terminate
8.4----------------Payment Due to Termination by AUL
ARTICLE 9 MISCELLANEOUS
9.1----------------Ownership
9.2----------------AUL's Annual Statement
9.3----------------Certification of Plan Status
9.4----------------Essential Data
9.5----------------Reliance
9.6----------------Misstatement of Essential Data
9.7----------------Annuity Certificates
9.8----------------Election, Notice, or Direction Requirements
9.9----------------Quarterly Statement of Account Value
9.10---------------Conformity with State Laws
9.11---------------Reference to Federal Laws
9.12---------------Sex and Number
9.13---------------Facility of Payment
9.14---------------Insulation from Liability
9.15---------------Voting
9.16---------------Acceptance of New Participants or Contributions
9.17---------------Notice of Annual Meeting of Members
TABLE OF IMMEDIATE ANNUITIES
P-12518.2
ARTICLE 1 - DEFINITIONS
1.1 "Account Value" for any Participant Account on any given date means:
(a) the balance of the Participant Account's share of the Fixed Interest
Account on that date; plus
(b) the value of the Participant Account's share of each Investment
Account on that date.
1.2 "Accumulation Period" means the period of time commencing on the date on
which a Participant's initial Contribution is credited to the Participant
Account and terminating on the date when such Participant Account is
closed.
1.3 "Accumulation Unit" means a statistical device used to measure amounts of
increases to, decreases from, and accumulations in any Investment Account
during the Accumulation Period.
1.4 "Contract Anniversary" means the first day of each Contract Year. Each
Contract Anniversary after the First Contract Anniversary shall be the same
day of the same month as the day and month which is stated on the face page
of this contract for the First Contract Anniversary.
1.5 "Contract Quarter" means each of the four successive intervals of three
months, the sum of which corresponds to a 12-month Contract Year.
1.6 "Contract Year" means, for the first such year, the period beginning with
the Contract Date and ending on the day immediately preceding the First
Contract Anniversary, and for each succeeding Contract Year, the period
beginning with a Contract Anniversary and ending on the day immediately
preceding the next succeeding Contract Anniversary.
1.7 "Contributions" means amounts paid to AUL by the Contractholder and
credited to a Participant Account hereunder. "Excess Contributions" means
those Contributions made on behalf of a Participant which exceed the
limitations in effect under applicable provisions of the Internal Revenue
Code and Regulations issued thereunder.
1.8 "Current Rates of Interest" means each of the annual effective rates of
interest as determined and declared by AUL from time-to-time and as
credited to each interest pocket maintained within the Fixed Interest
Account. The Current Rates of Interest shall always be equal to or greater
than the Guaranteed Rate of Interest.
1.9 "Fixed Interest Account" means that fund of AUL's general asset account in
which all or a portion of a Participant's Account Value may be held for
accumulation at the Current Rates of Interest.
(a) Contributions allocated, or amounts transferred, to the Fixed Interest
Account shall be credited to the open interest pocket and shall earn
interest at the Current Rate of Interest in effect for that interest
pocket. Such Contributions or transferred amounts, during the time
that the Current Rate of Interest exceeds the Guaranteed Rate of
Interest, shall earn interest at such credited Current Rate of
Interest for at least 1 year. After such 1-year period, AUL reserves
the right to declare, at any time, a new Current Rate of Interest to
be applied to funds held within that interest pocket. Any such new
Current Rate of Interest must remain in effect for that interest
pocket for at least 1 year.
(b) If AUL changes the Current Rate of Interest for new Contributions or
new amounts transferred to the
P-12518.3
Fixed Interest Account, the previous open interest pocket shall close,
and any Contributions or amounts transferred on or after the
effective date of such change shall be credited to a new open interest
pocket and shall earn interest at the new Current Rate of Interest in
effect for such new open interest pocket. Therefore, at any given
time, various funds credited to a Participant Account and allocated to
the Fixed Interest Account may be earning interest at different
Current Rates of Interest for different periods of time.
1.10 "Guaranteed Rate of Interest" means interest at an annual effective rate of
4.00%.
1.11 "Home Office" means the principal office of AUL. The mailing address is
▇.▇. ▇▇▇ ▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇.
1.12 "Investment Account" means each subaccount of the Variable Account, which
subaccounts include the Equity Investment Account, the Bond Investment
Account, the Money Market Investment Account, and the Managed Investment
Account, as the case may be, where:
(a) Amounts allocated to the Equity Investment Account shall be invested
in shares of the AUL American Equity Portfolio of the Mutual Fund.
(b) Amounts allocated to the Bond Investment Account shall be invested in
shares of the AUL American Bond Portfolio of the Mutual Fund.
(c) Amounts allocated to the Money Market Investment Account shall be
invested in shares of the AUL American Money Market Portfolio of the
Mutual Fund.
(d) Amounts allocated to the Managed Investment Account shall be invested
in shares of the AUL American Managed Portfolio of the Mutual Fund.
1.13 "Investment Liquidation Charge" means a charge taken by AUL which is
determined by multiplying a percentage times that portion of the Withdrawal
Value allocated to the Fixed Interest Account which is to be paid under
Section 8.2. The percentage shall be 6 times (X-Y) where:
X = the Current Rate of Interest being credited by AUL, as of the
effective date of termination, to new Contributions to the Fixed
Interest Account; and
Y = the average rate of interest being credited by AUL, as of the
effective date of termination, to each affected Participant Account's
share of the Fixed Interest Account.
If Y is greater than X, the Investment Liquidation Charge shall be zero.
AUL's determination of the Investment Liquidation Charge shall be
conclusive.
1.14 "Investment Option" means the Fixed Interest Account or any of the
Investment Accounts of the Variable Account. AUL reserves the right to
provide other Investment Options under this contract at any time.
1.15 "Mutual Fund" means the AUL American Series Fund, Inc., a diversified,
open-end management investment company registered under The Investment
Company Act of l940.
1.16 "Participant" means any person reported to AUL by the Contractholder as
eligible for, and as
P-12518.4
participating in, the Plan, and for whom a Participant Account is
established.
1.17 "Participant Account" means an account established under this contract for
a Participant. Contributions received by AUL shall be credited to
Participant Accounts as directed by the Contractholder.
1.18 "Plan" means the Contractholder's plan of deferred compensation as it
exists on the Contract Date, and any subsequent amendment to it.
1.19 "Portfolio" means a series of the Mutual Fund as described in the
prospectus for the Mutual Fund as such prospectus may be amended or
supplemented from time to time.
1.20 "Valuation Date" means any day when the Home Office of AUL and the New York
Stock Exchange are open and operational.
1.21 "Valuation Period" means the period beginning at the close of business on a
Valuation Date and ending at the close of business on the next succeeding
Valuation Date.
1.22 "Variable Account" means a separate account established by AUL called the
AUL American Unit Trust, which is registered under The Investment Company
Act of l940 as a unit investment trust.
1.23 "Withdrawal Charge" means a charge taken by AUL equal to a percentage of
the Account Value withdrawn pursuant to Sections 4.8 or 8.2, where the
percentage varies by the number of full years measured from the date a
Participant Account is established to the date the Withdrawal Charge is
determined. Such percentage is as follows:
During
Account Years Percentage
1-5 8
6-10 4
Thereafter 0
In no event will the cumulative total of all Withdrawal Charges, including those
previously assessed against any amount withdrawn from a Participant Account,
exceed 9% of total Contributions allocated to that Participant Account.
1.24 "Withdrawal Value" means a Participant's Account Value minus the applicable
Withdrawal Charge.
P-12518.5
ARTICLE 2 - CONTRACT AND AUTHORITY
2.1 Entire Contract: This contract and the application of the Contractholder is
the entire agreement between AUL and the Contractholder. AUL is not a party
to, nor bound by, a Plan, trust, custodial agreement, or other agreement,
or any amendment or modification to any of the same. AUL is not a fiduciary
under this contract or under any such Plan, trust, custodial agreement, or
other agreement.
2.2 Authority: This contract cannot be modified or amended, nor can any
provision or condition be waived, except by a written agreement signed by a
corporate officer of AUL. Such authority may not be delegated to any other
person or entity, except by a written agreement signed by a corporate
officer of AUL.
P-12518.6
ARTICLE 3 - CONTRIBUTIONS, INVESTMENTS, AND TRANSFERS
3.1 Amount of Contributions: Contributions may vary in amount and frequency;
however, they must be at least equal to a minimum annual Contribution of
$300 per Participant in any full Contract Year. AUL may change the minimum
annual Contribution acceptable under this contract, but any such change
shall apply only to individuals who become Participants on or after the
date of the change.
Excess Contributions (plus gains or minus losses thereon) shall be with-
drawn from a Participant Account and returned to the Contractholder or to
whomever the Contractholder directs pursuant to the Plan upon receipt by
AUL at its Home Office of complete written instructions from the
Contractholder. Such written instructions must include the amount to be
withdrawn and returned, and certification that such Contributions
constitute Excess Contributions and that such returns are permitted by the
Plan and by applicable provisions of the Internal Revenue Code and
Regulations issued thereunder. It shall not be the responsibility of AUL to
determine the existence or amount of Excess Contributions or gains or
losses thereon, or that returns of Excess Contributions are permitted by
the Plan and by applicable provisions of the Code and Regulations. In
withdrawing and returning the identified amount, AUL may rely solely on
such written instructions and certification. Such a withdrawal and return
of Excess Contributions shall not be subject to Section 4.8.
3.2 How Contributions Are Handled:
(a) When a Contribution is received at the Home Office, it shall be
credited to Participant Accounts as directed by the Contractholder in
written allocation instructions.
(b) The initial Contribution for a Participant shall be credited and
allocated to the Participant Account no later than the close of
business on the second business day of AUL after the later of (1) the
business day that AUL receives the initial Contribution at its Home
Office, or (2) the business day that AUL receives, at its Home Office,
the data required to establish the Participant Account and allocation
instructions regarding the initial Contribution. If the data required
to establish the Participant Account and allocation instructions
regarding the initial Contribution are not received by AUL at its Home
Office within 5 business days after AUL first receives the initial
Contribution, AUL shall return the initial Contribution to the
Contractholder unless the Contractholder consents to AUL retaining the
initial Contribution until AUL receives the data and allocation
instructions for the Participant.
(c) All Contributions subsequent to the initial Contribution shall be
credited and allocated as of the close of business on the Valuation
Period in which AUL receives the Contribution at its Home Office,
provided that the Contribution is received by 4:00 p.m. E.S.T. If the
Contribution is received after 4:00 p.m. E.S.T., such Contribution
shall be deemed to be received, and shall be credited and allocated as
of the close of business, on the next succeeding Valuation Period.
P-12518.7
(d) Within any one Participant Account, the amount so credited shall be
allocated to an Investment Option in increments of 10%, 25%, or
33-1/3%. If no allocation instruction is made with respect to any
Participant Account, AUL shall process such credits in accordance with
the allocation instruction applicable to the immediately preceding
Contribution. If there should be no Contractholder allocation
instruction applicable to a portion of a Contribution, that amount
shall be credited to the Fixed Interest Account until such time as an
appropriate Contractholder allocation instruction is received, except
as provided above for the initial Contribution. The Contractholder or
Participant may change an allocation instruction with respect to
future allocations to any Participant Account by giving new written
allocation instructions to AUL.
3.3 Addition, Deletion, or Substitution of Investments:
(a) AUL reserves the right, subject to compliance with applicable law, to
make additions to, deletions from, substitution for, or combinations
of, the securities that are held by the Variable Account or any
Investment Account or that the Variable Account or any Investment
Account may purchase. AUL reserves the right to eliminate the shares
of any of the eligible Portfolios and to substitute shares of, or
interests in, another Portfolio of the Mutual Fund, of another
open-end, registered investment company, or other investment vehicle,
for shares already purchased or to be purchased in the future under
the contract, if the shares of any or all eligible Portfolios are no
longer available for investment, or if, in AUL's judgment, further
investment in any or all eligible Portfolios becomes inappropriate in
view of the purposes of the Variable Account or the contract. Where
required under applicable law, AUL will not substitute any shares
attributable to the Contractholder's interest in the Variable Account
or any Investment Account without notice, Contractholder or
Participant approval, or prior approval of the Securities and Exchange
Commission or a state insurance commissioner, and without following
the filing or other procedures established by applicable state
insurance regulators. Nothing contained herein shall prevent the
Variable Account from purchasing other securities for other series or
classes of contracts, or from effecting a conversion between series or
classes of contracts on the basis of requests made by a majority of
other contractholders or as permitted by federal law.
(b) AUL reserves the right to establish additional Investment Accounts,
each of which would invest in a new Portfolio of the Mutual Fund, or
in other securities, investment vehicles, or shares of another
diversified open-end management investment company or series thereof.
AUL reserves the right to eliminate existing Investment Accounts if,
in its sole discretion, marketing, tax, or investment conditions so
warrant. AUL also reserves the right to provide other Investment
Options under this contract at any time.
(c) In the event of any such substitution or change, AUL may, by
appropriate amendment, make such changes in this contract as may be
necessary or appropriate to reflect such substitution or change. If
deemed by AUL to be in the best interests of persons or entities
having voting rights under this contract, the Variable Account may be
operated as a management investment company or any other form
permitted by law, it may be deregistered in the event such
registration is no longer required, or it may be combined with other
separate accounts of AUL or an affiliate thereof. AUL may take such
action as is necessary to comply with, or to obtain, exemptions from
the Securities and Exchange Commission with regard to the Variable
Account. Subject to compliance with
P-12518.8
applicable law, AUL also may combine one or more Investment Accounts
and may establish a committee, board, or other group to manage one or
more aspects of the operation of the Variable Account.
3.4 Transfers:
(a) Subject to the limitations of Section 3.5, the Contractholder, or that
person designated in writing to AUL by the Contractholder, may direct
AUL in writing to transfer the amounts credited to an Investment
Option to any other Investment Option during the Accumulation Period.
Any transfer from an Investment Account shall be effective as of the
close of business on the Valuation Date that AUL receives the
Contractholder's direction, provided that AUL receives such direction
by 4:00 p.m. E.S.T. on that Valuation Date. If such direction is
received after 4:00 p.m. E.S.T., such transfer shall be effective as
of the close of business on the next succeeding Valuation Date.
(b) AUL shall make the transfer as requested by the Contractholder within
7 days from the date a proper request is received by AUL at its Home
Office, except as AUL may be permitted to defer such payment of
amounts withdrawn from the Variable Account in accordance with
appropriate provisions of the federal securities laws. AUL reserves
the right to defer a transfer of amounts from the Fixed Interest
Account for a period of 6 months after AUL receives the transfer
request at its Home Office.
(c) All transfers from the Fixed Interest Account to any Investment
Account shall be made on a first-in/first-out accounting basis.
3.5 Limitations on Transfers:
(a) The Contractholder may not direct a transfer with regard to the
Participant Account's share of any Investment Option in an amount less
than $500 or the Participant Account's entire share, if less than
$500. If such a transfer reduces the Participant Account's remaining
share of an Investment Option to less than $500, the entire remaining
share shall also be transferred.
(b) Amounts transferred from the Fixed Interest Account on behalf of a
Participant during any Contract Year shall not exceed 20% of the
Participant Account's share of the Fixed Interest Account determined
as of the last Contract Anniversary preceding the request for
transfer, or the Participant Account's entire share of the Fixed
Interest Account if such share would be less than $500 after the
transfer.
(c) Amounts under this contract which have been transferred from other
group annuity contracts, whether issued by AUL or otherwise, shall be
allocated pursuant to the provisions of Section 3.2.
(d) AUL reserves the right to change the limitation on the minimum
transfer, to change the limit on remaining balances, to limit the
number and frequency of transfers, to suspend the transfer privilege
provided in Sections 3.4 and 3.5, and to impose a charge on a
transfer.
P-12518.9
ARTICLE 4 - BENEFITS
4.1 Election of Annuity Options: At the written request of the Contractholder,
AUL shall apply all or a portion of the Account Value (subject to Section
6.5) of a Participant Account for the purpose of providing a fixed payment
annuity under the Plan. Upon receipt of such request, AUL is hereby
authorized by the Contractholder to value and transfer the Participant
Account's share of the Variable Account to the Fixed Interest Account as of
the date that AUL receives such written request at its Home Office. Such
transferred amounts shall be held in the Fixed Interest Account until such
time as such amounts are used to provide an annuity under the Plan. The
Contractholder request shall include certification as to the purpose for
the annuity and the election of one of the following annuity options.
The amount of the annuity shall be computed from the Table of Immediate
Annuities then included in this contract, except as provided under Section
4.4.
4.2 Annuity Options:
(a) Life Annuity. The monthly annuity shall be payable to the annuitant
for as long as the annuitant lives, and shall end with the last
monthly payment before the death of the annuitant.
(b) Certain and Life Annuity. The monthly annuity shall be payable to the
annuitant for as long as the annuitant lives. If the annuitant dies
before receiving payments for the certain period (5, 10, 15, or 20
years, as specified in the election), any remaining payments for the
balance of the certain period shall be paid to the annuitant's
beneficiary.
(c) Survivorship Annuity. The monthly annuity shall be payable to the
annuitant for as long as the annuitant lives. After the death of the
annuitant, a portion (all, 2/3, or 1/2, as specified in the election)
of the monthly annuity shall be paid to the contingent annuitant named
in the election for as long as the contingent annuitant lives. An
election of this option is automatically cancelled if either the
Participant or the contingent annuitant dies before the annuity
commencement date.
(d) Installment Refund Life Annuity. The monthly annuity shall be payable
to the annuitant for as long as the annuitant lives, and shall end
with the last monthly payment before the death of the annuitant. If,
at the death of the annuitant, the sum of the monthly payments
previously received is less than the amount applied to provide the
annuity, monthly payments of the same amount shall continue to the
annuitant's beneficiary until the total of the monthly payments
received equals such amount.
(e) Fixed Period. The monthly annuity shall be payable to the annuitant
for a fixed period of time (not less than 5 years nor more than 30
years, as specified in the election). If, at the death of the
annuitant, payments have been made for less than the selected fixed
period, monthly annuity payments to the annuitant's beneficiary shall
be continued during the remainder of such fixed period.
(f) Lump Sum Payment. If the total Account Value is less than $2,000, such
value shall not be annuitized under options (a), (b), (c), (d), (e),
or (g) of this Section, but shall be paid in a lump sum.
P-12518.10
(g) Any other options mutually agreed upon between the Contractholder and
AUL shall be made available.
If the annuity option selected is not included in the attached Table of
Immediate Annuities, the amount of monthly annuity shall be based on rates
determined in the same manner as those found in the Table.
If no annuity option election for a Participant has been received by AUL at
its Home Office at least 30 days prior to the annuity commencement date,
the Account Value (subject to Section 6.5) of his Participant Account shall
be applied under (b) above as a 10 Year Certain and Life Annuity. The
Contractholder shall notify AUL of such annuity commencement date, shall
designate the contingent annuitant or beneficiary, and shall provide AUL
with any election forms needed in connection with any annuity option
provided in this Section.
4.3 Guaranteed Rate of Interest: The retirement annuity options provided in
this Article and illustrated in the attached Table of Immediate Annuities
are based on a guaranteed interest rate of 4.00% compounded annually.
4.4 Alternate Nonparticipating Retirement Annuity: Any annuity elected shall be
provided at whatever current single premium nonparticipating immediate
annuity rates are available under this class of group annuity contract if
such rates produce a higher income than that provided under the Table of
Immediate Annuities provided in this contract.
4.5 Minimum Payments: If the monthly annuity is less than AUL's then current
established minimum, AUL reserves the right to make payments on a less
frequent basis or to pay the Account Value in a single sum.
4.6 Due Proof of Date of Birth and Survival: Before commencing payments under
any annuity, AUL may require proof of the date of birth of any annuitant
and may require due proof that any annuitant is living before the payment
of each or any installment under the option.
4.7 Death Benefits:
(a) Upon receipt of written instructions from the Contractholder and of
due proof of the Participant's (and, if applicable, the beneficiary's)
death during the Accumulation Period at its Home Office, AUL shall
apply the Account Value of the Participant Account for the purpose of
providing a death benefit under the Plan. The death benefit shall be
paid to the Contractholder or to whomever the Contractholder directs.
(b) The Account Value to be applied pursuant to (a) above shall be
determined as of the close of business on the later of (1) the
Valuation Date that AUL receives the Contractholder request at its
Home Office, or (2) the Valuation Date that AUL receives due proof of
death at its Home Office, provided that such request or due proof of
death received on the later of (1) or (2) above is received by 4:00
p.m. E.S.T. If the request or due proof of death received on the later
of (1) or (2) above is received after 4:00 p.m. E.S.T., such valuation
shall be made as of the close of business on the next succeeding
Valuation Date.
P-12518.11
(c) This payment may be in one sum or in the form of a monthly annuity
under one of the options in Section 4.2. If payment is to be made in a
cash lump sum, payment shall be made within 7 days of the date of
valuation, as determined above in this Section, except as AUL may be
permitted to defer such payment of amounts derived from the Variable
Account in accordance with the provisions of federal securities laws.
Also, AUL reserves the right to defer the payment of amounts withdrawn
from the Fixed Interest Account for a period of 6 months after AUL
receives written instructions at its Home Office.
4.8 Withdrawal Benefits:
(a) The Contractholder, upon submitting a proper written request to AUL at
its Home Office, may direct AUL to withdraw all or a portion of the
Account Value (subject to the Withdrawal Charge) of any Participant
Account for any purpose permitted for the Plan under applicable law,
which may include providing benefits for retirement, disability,
unforeseeable emergencies, attainment of age 70-1/2, or termination,
other than Plan termination benefits, as set forth in the Plan. Any
withdrawal request submitted by the Contractholder pursuant to the
previous sentence shall include the certification as to the purpose of
the withdrawal. The Contractholder assumes full responsibility for
determining whether any withdrawal is permitted under applicable law
and under the terms of a particular Plan.
(b) Withdrawals from a Participant Account's share of an Investment Option
may not be made in an amount less than the smaller of $500 or the
Participant Account's entire share of the Investment Option. If a
withdrawal reduces the Participant Account's share of an Investment
Option to less than $500, such remaining share shall also be
withdrawn.
(c) A withdrawal request shall be effective as of the close of business on
the Valuation Date that AUL receives a proper written Contractholder
request at its Home Office, provided that AUL receives such request by
4:00 p.m. E.S.T. on that Valuation Date. If such request is received
after 4:00 p.m. E.S.T., such request shall be effective as of the
close of business on the next succeeding Valuation Date.
(d) The Account Value to be applied pursuant to this Section shall be
determined as of the applicable Valuation Date determined in (c)
above. If the entire Account Value of a Participant Account is
withdrawn, the Contractholder or party named by the Contractholder
shall be paid the Withdrawal Value. If the Contractholder requests
that a specified percentage or dollar amount be paid to the
Contractholder or to a party named by the Contractholder, AUL shall
withdraw from the Participant Account an amount equal to the dollar
amount to be paid divided by the difference between 1 and the decimal
equivalent of the applicable Withdrawal Charge. Notwithstanding the
previous sentence, in any Contract Year the Contractholder may
withdraw up to 10% of the Account Value of a Participant Account
determined as of the last Contract Anniversary preceding the request
for the withdrawal without application of any Withdrawal Charge,
provided that 12 months have elapsed from the date that the
Participant's first Contribution is credited to his Participant
Account by AUL to the date of such withdrawal.
(e) AUL shall pay such amount in a cash lump sum to the Contractholder or
as otherwise directed by the Contractholder. Such cash lump sum will
be paid within 7 days from the date that AUL receives the withdrawal
request at its Home Office, except as AUL may be permitted to defer
such payment of amounts withdrawn from the Variable Account in
accordance with appropriate provisions of the federal securities laws.
AUL reserves the right to defer the payment of amounts withdrawn from
the Fixed Interest Account for a period of up to 6
P-12518.12
months after AUL receives the withdrawal request at its Home Office.
(f) Withdrawals from a Participant Account's share of the Fixed Interest
Account shall be made on a first-in/first-out basis so that all or a
portion of the amounts credited to the Participant Account's share of
the Fixed Interest Account which have been on deposit for the longest
period of time, as well as the interest credited thereon, shall be
withdrawn first.
(g) No withdrawals shall be permitted prior to the termination of this
contract except as provided in this Section 4.8.
P-12518.13
ARTICLE 5 - VALUATIONS
5.1 Time of Valuation: All assets of each Portfolio shall be valued as provided
in the prospectus for the Mutual Fund as such prospectus may be amended or
supplemented from time to time.
5.2 Accumulation Units: Any amounts that are allocated to any Investment
Account on behalf of a Participant shall be credited to his Participant
Account in the form of Accumulation Units on the basis of the value of such
units in that Investment Account as of the end of the Valuation Period on
which such amounts are received by AUL at its Home Office. Such crediting
shall be made separately for amounts allocated to each Investment Account.
The number of Accumulation Units in each Investment Account credited to
each Participant Account as of any Valuation Period shall be determined by
dividing the amounts allocated to that Investment Account for that
Participant Account as of such Valuation Period by the dollar value of one
Accumulation Unit in that Investment Account as of the close of business on
the applicable Valuation Period. The number of Accumulation Units thus
determined shall not be changed by any subsequent change in the dollar
value of the Accumulation Units.
5.3 Value of Accumulation Units: The value of an Accumulation Unit in each
Investment Account was established at $1.00 as of April 12, 1990. The value
of an Accumulation Unit in each Investment Account as of any Valuation
Period thereafter is equal to the dollar value of one Accumulation Unit in
that Investment Account as of the immediately preceding Valuation Period
multiplied by the Net Investment Factor, as defined in Section 5.4, for
that Investment Account for the current Valuation Period. The value of an
Accumulation Unit for each Investment Account shall be determined for each
Valuation Period before giving effect to any additions, withdrawals, or
transfers. After such determination, the additions, withdrawals, or
transfers which are effective as of that day shall then be made.
5.4 Determining the Net Investment Factor: The Net Investment Factor for each
Investment Account for any Valuation Period is determined by dividing (a)
by (b), and then subtracting (c) from that result, where:
(a) is equal to:
(l) the net asset value of a Portfolio share held in the Investment
Account determined as of the end of the current Valuation Period,
plus
(2) the per share amount of any dividend or other distribution, if
any, paid by the Portfolio during the current Valuation Period,
plus or minus
(3) any credit or charge for any taxes paid or reserved for by AUL
during the current Valuation Period which are determined by AUL
to be attributable to operation of the Investment Account;
(b) is the net asset value of a Portfolio share held in the Investment
Account determined as of the end of the immediately preceding
Valuation Period; and
(c) is a daily charge factor determined by AUL to reflect the charges
assessed against the assets of the Investment Account for mortality
and expense risks.
P-12518.14
5.5 Determining the Value of Each Participant Account's Share of any Investment
Account: The value of each Participant Account's share of any Investment
Account as of any Valuation Date shall be determined by multiplying the
Participant Account's aggregate Accumulation Units in that Investment
Account as of such Valuation Date by the dollar value of one Accumulation
Unit in that Investment Account as of such Valuation Date. The value of the
Participant Account's share of any Investment Account as of any date other
than a Valuation Date is equal to the value of its share of that Investment
Account as of the immediately preceding Valuation Date.
P-12518.15
ARTICLE 6 - OTHER CHARGES
6.1 Mortality Risk and Expense Risk Charges: AUL shall deduct a daily mortality
risk charge and a daily expense risk charge equal to the daily equivalent
of an annual charge of .85% and .40%, respectively, against the average
daily net assets of each Investment Account.
6.2 Investment Management Charge: The Mutual Fund shall pay an investment
advisory fee and certain other expenses, which may include its operational
and organizational expenses, as described in the current prospectus as it
may be amended or supplemented from time to time. These expenses may vary
from year to year. The net asset value of each Portfolio reflects such
investment advisory fee and other expenses which are deducted from the
assets of such Portfolio.
6.3 Administrative Charge: AUL shall deduct an administrative charge per
Contract Quarter equal to the lesser of $7.50 or 0.5% of the Account Value
on the last day of each Contract Quarter from each Participant Account in
existence on such day for so long as the Participant Account is in effect
during the Accumulation Period. This charge is to be prorated among each
subaccount of the Participant Account which corresponds to each Investment
Option utilized under this contract by that Participant Account. If the
entire balance of a Participant Account is applied or withdrawn pursuant to
Sections 4.1, 4.7, 4.8, or 8.2, the administrative charge attributable to
the period of time which has elapsed since the first day of the Contract
Quarter in which such application or withdrawal of funds is made shall not
be deducted from the amount applied or withdrawn.
6.4 Transfer Charge: AUL reserves the right to deduct a charge for each
transfer transaction pursuant to Section 3.4. This charge would be prorated
among the Investment Options from which the amounts are transferred in the
same proportion that the amount transferred from the Investment Option
bears to the total amount transferred from all Investment Options.
6.5 Other Charges: AUL reserves the right to deduct the appropriate premium tax
charge at the time annuity payments commence pursuant to Section 4.1 or
such other time that premium taxes are incurred by AUL. AUL also reserves
the right to deduct the appropriate charges for federal, state, or local
income taxes incurred by AUL that are attributable to the Variable Account
and its Investment Accounts.
6.6 Reduction or Waiver of Certain Charges: AUL may reduce or waive the amount
of the Withdrawal Charge or the administrative charge discussed in Section
6.3 where the expenses associated with the sale of this contract or the
administrative costs associated with this contract are reduced, or where
this contract is sold to the directors or employees of AUL or any of its
affiliates, or to directors or any employees of the Mutual Fund.
P-12518.16
ARTICLE 6 - OTHER CHARGES
6.1 Mortality Risk and Expense Risk Charges: AUL shall deduct a daily mortality
risk charge and a daily expense risk charge equal to the daily equivalent
of an annual charge of .85% and .40%, respectively, against the average
daily net assets of each Investment Account.
6.2 Investment Management Charge: The Mutual Fund shall pay an investment
advisory fee and certain other expenses, which may include its operational
and organizational expenses, as described in the current prospectus as it
may be amended or supplemented from time to time. These expenses may vary
from year to year. The net asset value of each Portfolio reflects such
investment advisory fee and other expenses which are deducted from the
assets of such Portfolio.
6.3 Administrative Charge: AUL shall deduct an administrative charge per
Contract Quarter equal to the lesser of $3.00 or 0.5% of the Account Value
on the last day of each Contract Quarter from each Participant Account in
existence on such day for so long as the Participant Account is in effect
during the Accumulation Period. This charge is to be prorated among each
subaccount of the Participant Account which corresponds to each Investment
Option utilized under this contract by that Participant Account. If the
entire balance of a Participant Account is applied or withdrawn pursuant to
Sections 4.1, 4.7, 4.8, or 8.2, the administrative charge attributable to
the period of time which has elapsed since the first day of the Contract
Quarter in which such application or withdrawal of funds is made shall not
be deducted from the amount applied or withdrawn.
6.4 Transfer Charge: AUL reserves the right to deduct a charge for each
transfer transaction pursuant to Section 3.4. This charge would be prorated
among the Investment Options from which the amounts are transferred in the
same proportion that the amount transferred from the Investment Option
bears to the total amount transferred from all Investment Options.
6.5 Other Charges: AUL reserves the right to deduct the appropriate premium tax
charge at the time annuity payments commence pursuant to Section 4.1 or
such other time that premium taxes are incurred by AUL. AUL also reserves
the right to deduct the appropriate charges for federal, state, or local
income taxes incurred by AUL that are attributable to the Variable Account
and its Investment Accounts.
6.6 Reduction or Waiver of Certain Charges: AUL may reduce or waive the amount
of the Withdrawal Charge or the administrative charge discussed in Section
6.3 where the expenses associated with the sale of this contract or the
administrative costs associated with this contract are reduced, or where
this contract is sold to the directors or employees of AUL or any of its
affiliates, or to directors or any employees of the Mutual Fund.
P-12518.16 (g&w)
ARTICLE 7 - RIGHT OF AUL TO CHANGE CERTAIN PROVISIONS
7.1 Right of AUL to Change Interest Rates: AUL has the right at any time, upon
delivery of written notice to the Contractholder, to change the Guaranteed
Rate of Interest. Any such change shall apply only to Participant Accounts
established on or after the effective date of such change, and shall apply
for the duration of such affected Participant Accounts. Any change in the
Guaranteed Rate of Interest shall not result in a rate less than that
prescribed by applicable state law.
7.2 Right of AUL to Change Annuity Table: After the first 5 Contract Years, AUL
has the right at any time, upon delivery of written notice to the
Contractholder, to change any annuity table included in this contract, but
any such change shall apply only to Participant Accounts established on or
after the effective date of such change.
7.3 Right of AUL to Change Charges: AUL has the right at any time, upon
delivery of written notice to the Contractholder, to change the charges set
out in Sections 1.23 and 6.3. Any such change to the Withdrawal Charge set
out in Section 1.23 shall apply only to Participant Accounts established on
or after the effective date of such change, and shall apply for the
duration of such affected Participant Accounts. The administrative charge
set out in Section 6.3 shall be limited to a maximum of $15 per Contract
Quarter until the year 2001. Any increase in the administrative charge made
by AUL for any Contract Quarter beginning after December 31, 2000 shall be
limited to an amount which is designed to reimburse AUL for the expenses
associated with the administration of the contract and the operation of the
Variable Account. Any such increase shall not be anticipated to be a source
of profit for AUL.
7.4 Amendment of Contract to Conform with Law: AUL reserves the right to amend
this contract at any time, without the consent of the Contractholder,
Participants, or any other person or entity, to make any change to any
provisions of the contract to comply with, or give the Contractholder or
Participants the benefit of, any provisions of federal or state laws,
regulations, or rulings. Any such amendment shall be stated in a written
instrument and delivered to the Contractholder.
P-12518.17
ARTICLE 7 - RIGHT OF AUL TO CHANGE CERTAIN PROVISIONS
7.1 Right of AUL to Change Interest Rates: AUL has the right at any time, upon
delivery of written notice to the Contractholder, to change the Guaranteed
Rate of Interest. Any such change shall apply only to Participant Accounts
established on or after the effective date of such change, and shall apply
for the duration of such affected Participant Accounts. Any change in the
Guaranteed Rate of Interest shall not result in a rate less than that
prescribed by applicable state law.
7.2 Right of AUL to Change Annuity Table: After the first 5 Contract Years, AUL
has the right at any time, upon delivery of written notice to the
Contractholder, to change any annuity table included in this contract, but
any such change shall apply only to Participant Accounts established on or
after the effective date of such change.
7.3 Right of AUL to Change Charges: AUL has the right at any time, upon
delivery of written notice to the Contractholder, to change the charges set
out in Sections 1.23 and 6.3. Any such change to the Withdrawal Charge set
out in Section 1.23 shall apply only to Participant Accounts established on
or after the effective date of such change, and shall apply for the
duration of such affected Participant Accounts. The administrative charge
set out in Section 6.3 shall be limited to a maximum of $15 per Contract
Quarter until the year 2001. Any increase in the administrative charge made
by AUL for any Contract Quarter beginning after December 31, 2000 shall be
limited to an amount which is designed to reimburse AUL for the expenses
associated with the administration of the contract and the operation of the
Variable Account. Any such increase shall not be anticipated to be a source
of profit for AUL. Such administrative charge shall in no event exceed
$50.00 for any Contract Quarter beginning after December 31, 2000.
7.4 Amendment of Contract to Conform with Law: AUL reserves the right to amend
this contract at any time, without the consent of the Contractholder,
Participants, or any other person or entity, to make any change to any
provisions of the contract to comply with, or give the Contractholder or
Participants the benefit of, any provisions of federal or state laws,
regulations, or rulings. Any such amendment shall be stated in a written
instrument and delivered to the Contractholder.
P-12518.17 (PA)
ARTICLE 8 - TERMINATION OF CONTRACT
8.1 Right of Contractholder to Terminate: This contract shall terminate if the
Contractholder gives written notice to AUL that this contract is to be
terminated. In such event, the termination notice shall be effective as of
the close of business on the Valuation Date that AUL receives a proper
written Contractholder notice at its Home Office, provided that AUL
receives such notice by 4:00 p.m. E.S.T. on that Valuation Date. If such
notice is received after 4:00 p.m. E.S.T., such notice shall be effective
as of the close of business on the next succeeding Valuation Date. This
date shall be the effective date of termination.
8.2 Payment Due to Termination by Contractholder: As of the effective date of
termination of this contract by the Contractholder pursuant to Section 8.1,
the Contractholder may elect to have a payment or payments made to whomever
the Contractholder directs under either payment option (a) or (b) as set
out below. Such payment or payments shall be in full settlement of this
contract and in lieu of any other payment under its terms. In order for
such an election to be effective, it must include the Contractholder's
agreement to indemnify and hold AUL harmless from any and all losses,
claims, or demands that may later arise or be asserted against AUL in
connection with the making of such a payment or payments. This
Contractholder's agreement must be received by AUL at its Home Office prior
to payment of any termination benefits provided by this Section 8.2. The
available payment options are:
(a) A single sum equal to the aggregate Withdrawal Value of all
Participant Accounts, reduced by any applicable Investment Liquidation
Charge, shall be calculated as of the close of business on the
effective date of termination and be payable within 7 days from the
effective date of termination, except as AUL may be permitted to defer
such payment of amounts attributable to the Variable Account in
accordance with appropriate provisions of the federal securities laws.
AUL reserves the right to defer the payment of amounts attributable to
the Fixed Interest Account for a period of up to 6 months after the
effective date of termination.
(b) (1) A single sum equal to that portion of the aggregate
Withdrawal Value of all Participant Accounts consisting of all of
the Accumulation Units of each Investment Account credited to
such Participant Accounts shall be calculated as of the close of
business on the effective date of termination and be payable
within 7 days from the effective date of termination, except as
AUL may be permitted to defer such payment in accordance with
appropriate provisions of the federal securities laws.
(2) In addition to the amount payable pursuant to Section 8.2(b) (1)
above, an amount equal to that portion of the aggregate
Withdrawal Value of all Participant Accounts consisting of the
net dollar balance in the Fixed Interest Account credited to such
Participant Accounts, calculated as of the Contract Anniversary
immediately succeeding the effective date of termination, shall
be payable in six equal annual installments, with the first
installment due as of the Contract Anniversary immediately
succeeding the effective date of termination. Under this Section
8.2(b)(2), AUL shall credit to the funds remaining after each
annual installment is made interest at an annual effective rate
which shall be equal to the lesser of (a) the weighted average of
each of the various annual effective rates of interest being
credited to each segment of the total Account Value held under
this contract determined as of the Contract Anniversary
immediately succeeding the effective date of termination, or (b)
the interest rate/U.S. Government Security Treasury Constant
Maturity for three (3) years (set forth in the Federal Reserve
Statistical Release H- 15) as determined on the Valuation Date
coincident with or next following the Contract Anniversary
immediately succeeding the effective date of termination, and
shall pay out the amount of interest credited annually as of the
immediately succeeding Contract Anniversary upon which an
installment payment of principal is made.
Under this payment option, AUL shall cease to maintain individual
Participant Accounts as of the Contract Anniversary immediately
succeeding the effective date of termination.
Until such time as the above-referenced election is implemented,
the terms of the contract shall remain applicable, except that
AUL shall have the right to refuse to accept further
Contributions.
8.3 Right of AUL to Terminate: AUL has the right, subject to applicable state
law, to terminate any Participant Account established under this contract
at any time during the Contract Year if the Account Value of such
Participant Account is less than $300 for the first Contract Year in which
a Contribution is made for the Participant, and $500 for any subsequent
Contract Year, and at least 6 months have elapsed since the
Contractholder's last previous Contribution to the contract. If AUL elects
to terminate a Participant Account in such event, such termination shall be
effective on the date 6 months following the date that AUL gives notice to
the Contractholder and the Participant that the Participant Account is to
be terminated, provided that the Contractholder fails to make Contributions
during such 6-month period sufficient to bring such Account Value up to the
minimum level.
8.4 Payment Due to Termination by AUL: As of the effective date of termination
of a Participant Account by AUL pursuant to Section 8.3, AUL may elect to
have a payment made as set out below to the Contractholder. Any such
payment shall be in full settlement of the Participant Account under this
contract and in lieu of any other payment under its terms.
Upon termination of a Participant Account pursuant to Section 8.3, a single
sum equal to the Account Value of the Participant Account shall be
calculated as of the close of business on the effective date of termination
and be payable within 7 days from such effective date of termination.
P-12518.18
ARTICLE 9 - MISCELLANEOUS
9.1 Ownership: The Contractholder is the owner of the contract and may agree
with AUL to any change or amendment of it without the consent of any other
person or entity. No other person or entity shall have any right, title, or
interest in this contract until such right, title, or interest is actually
made available to them. The value of all Contributions received under this
contract and the value of all property and rights purchased with, and all
income attributable to, such Contributions shall remain (until made
available to the Participant or other beneficiary) solely the property and
rights of the Contractholder (without being restricted to the provision of
benefits under the Plan), subject only to the claims of the
Contractholder's general creditors. No benefit or privilege under the
contract may be sold assigned, discounted, or pledged as collateral for a
loan, as security for the performance of an obligation, or for any other
purpose to any person or entity other than AUL.
AUL shall have no obligation to make any payment or distribution except as
specified in this contract.
9.2 AUL's Annual Statement: No provision or condition of this contract shall be
deemed to control, determine, or modify any annual statement of AUL made to
any insurance department, contractholder, regulatory body, or other person,
nor shall anything in such annual statement be deemed to control,
determine, or modify the valuation provided for in this contract, nor the
values determined, nor the market, book, or other value of any asset in any
Investment Account or Portfolio, nor any of the other provisions and
conditions of this contract.
9.3 Certification of Plan Status: The Contractholder certifies, upon acceptance
of this contract, that, in the Contractholder's opinion, the Plan is an
eligible deferred compensation plan which meets the requirements of Section
457 of the Internal Revenue Code of 1986, as amended. AUL does not make any
guarantee regarding the federal, state, or local tax status of this
contract, any Participant Account established hereunder, or any transaction
involving this contract.
9.4 Essential Data: The Contractholder shall furnish to AUL the name and age of
any person together with whatever information is necessary to establish the
eligibility and amount of annuity or other benefit in each instance. The
Contractholder shall report to AUL any person for whom a payment becomes
due under the Plan and the nature and amount of such payment before the
date on which such payment becomes due or as soon thereafter as is
practicable.
9.5 Reliance: AUL shall be fully protected in relying on any information
furnished by the Contractholder or by any person or persons certified to
AUL by the Contractholder as acting on its behalf. AUL need not inquire as
to the accuracy or completeness thereof.
9.6 Misstatement of Essential Data: If it has been found that any essential
data pertaining to any person has been omitted or misstated, including, but
not limited to, a misstatement as to the age of an annuitant, there shall
be an equitable adjustment so as to provide the annuity to which that
person is entitled.
9.7 Annuity Certificates: AUL shall issue to each person for whom an annuity is
purchased from AUL a certificate setting forth the amount and terms of
payment of the annuity.
P-12518.19
9.8 Election, Notice, or Direction Requirements: Wherever in this contract
reference is made to the Contractholder making a request or giving notice
or direction, such request, notice, or direction must be in writing and
must be submitted to and received by AUL at its Home Office before becoming
effective.
9.9 Quarterly Statement of Account Value: As soon as reasonably possible after
the end of each Contract Quarter, AUL shall prepare a statement of the
Account Value of each Participant Account existing under this contract.
9.10 Conformity with State Laws: Any benefit payable under this contract shall
not be less than the minimum benefit required by any statute of the state
in which the contract is delivered.
9.11 Reference to Federal Laws: Language in this contract referring to federal
tax, securities, or other statutes or rules shall not be deemed to
incorporate within the contract such statutes or rules. This language is
informational and instructional in nature, and is not subject to approval
or disapproval by the state in which the contract is issued.
9.12 Sex and Number: Whenever the context so requires, the plural includes the
singular, the singular the plural, and the masculine the feminine.
9.13 Facility of Payment: If any Participant, contingent annuitant, or
beneficiary is legally incapable of giving a valid receipt for any payment
due him, and no guardian has been appointed, AUL may make such payment to
the person or persons who have assumed the care and principal support of
such Participant, contingent annuitant, or beneficiary. Also, AUL may make
payment directly to any person or entity when directed to do so in writing
by the Contractholder. Any payment made by AUL will fully discharge AUL to
the extent of such payment.
9.14 Insulation from Liability: The assets of the Variable Account are not
chargeable with liabilities arising out of any other business AUL may
conduct.
9.15 Voting:
(a) AUL is the legal owner of the shares of the Mutual Fund held by the
Investment Accounts of the Variable Account. AUL shall exercise voting
rights attributable to the shares of each Portfolio held in the
Investment Accounts at any regular and special meetings of the
shareholders of the Mutual Fund on matters requiring shareholder
voting under The Investment Company Act of l940 or other applicable
laws. AUL shall exercise these voting rights based on instructions
received from persons having the voting interest in corresponding
Investment Accounts of the Variable Account. However, if The
Investment Company Act of l940 or any regulations thereunder should be
amended, or if the present interpretation thereof should change, and
as a result AUL determines that it is permitted to vote the shares of
the Mutual Fund in its own right, it may elect to do so.
(b) The person having the voting interest under this contract is the
Contractholder. Unless otherwise required by applicable law, the
number of Mutual Fund shares of a particular Portfolio as to which
voting instructions may be given to AUL is determined by dividing the
value of all of the Accumulation Units of the corresponding Investment
Account attributable to this contract on a particular date by the net
asset value per share of that Portfolio as of the same date.
Fractional votes will be counted. The number of votes as to which
voting instructions may be given will be determined as of the date
coincident with the date established by the Mutual Fund for
determining shareholders eligible to vote at the meeting
P-12518.20
of the Mutual Fund. If required by the Securities and Exchange
Commission, AUL reserves the right to determine in a different fashion
the voting rights attributable to the shares of the Mutual Fund.
(c) Voting rights attributable to this contract for which no timely voting
instructions are received will be voted by AUL in the same proportion
as the voting instructions which are received in a timely manner for
all contracts and Participant Accounts participating in that
Investment Account.
(d) Neither the Variable Account nor AUL is under any duty to inquire as
to the instructions received or the authority of Contractholders,
Participants, or others to instruct the voting of Mutual Fund shares.
(e) Every person or entity having such voting rights shall receive such
reports or prospectuses concerning the Variable Account or the Mutual
Fund as may be required by applicable federal law.
9.16 Acceptance of New Participants or Contributions. AUL reserves the right to
refuse to accept new Participants or new Contributions to this contract at
any time.
9.17 Notice of Annual Meeting of Members: The regular annual meeting of the
members of AUL shall be held at its principal place of business on the
third Thursday in February of each year at the hour of ten o'clock A.M.
Elections for directors shall be held at such annual meeting.
P-12518.21
TABLE OF IMMEDIATE ANNUITIES
MONTHLY INCOME PER $1,000 OF ACCOUNT VALUE
ADJUSTED LIFE 10 YEAR CERTAIN
AGE ANNUITY AND LIFE ANNUITY
45 2.9690 2.9632
46 3.0190 3.0124
47 3.0715 3.0641
48 3.1269 3.1185
49 3.1852 3.1756
50 3.2466 3.2357
51 3.3115 3.2988
52 3.3800 3.3653
53 3.4525 3.4352
54 3.5291 3.5088
55 3.6104 3.5863
56 3.6966 3.6678
57 3.7881 3.7536
58 3.8850 3.8437
59 3.9877 3.9382
60 4.0964 4.0374
61 4.2115 4.1414
62 4.3334 4.2505
63 4.4626 4.3650
64 4.5994 4.4850
65 4.7442 4.6108
66 4.8977 4.7425
67 5.0608 4.8804
68 5.2347 5.0250
69 5.4213 5.1766
70 5.6229 5.3356
71 5.8412 5.5020
72 6.0778 5.6755
73 6.3336 5.8552
74 6.6097 6.0404
75 6.9084 6.2302
94GARF2-4
Adjusted Age = Actual Age at Settlement (in years and completed months) less the
following number of months: [.6 multiplied by (Birth Year - 1915)] rounded to
the nearest integer.
P-12518.22
United Life Insurance Company(R)
▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇ ▇. ▇▇▇ ▇▇▇
▇▇▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇
CONTRACT NUMBER: ____________________
CONTRACT HOLDER: _____________________
PARTICIPANT NAME: _____________________
SOCIAL SECURITY NUMBER:______________
American United Life Insurance Company (AUL) hereby certifies that the
Contractholder and AUL have entered into a Multiple-Fund Group Variable Annuity
Contract (the Contract) in connection with the Contractholder's deferred
compensation plan, and that AUL has created an account in your name to receive
contributions from the Contractholder for your benefit pursuant to the Contract.
The only parties to the Contract are the Contractholder and AUL. All rights and
benefits are determined in accordance with the provisions of the Contract.
Benefits under the Contract will be paid at the Contractholder's direction. AUL
may make payment directly to a participant or beneficiary on the
Contractholder's behalf.
Any amendments to or changes in the Contract will be binding and conclusive on
each participant and beneficiary.
All communications should be directed to the Contractholder.
AMERICAN UNITED LIFE INSURANCE COMPANY
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Secretary
D.C.P. MULTIPLE FUND
GROUP VARIABLE ANNUITY CERTIFICATE
THE ASSETS HELD IN ANY INVESTMENT ACCOUNT FOR WHICH THE CONTRACT MAKES PROVISION
MAY INCREASE OR DECREASE IN DOLLAR VALUE ACCORDING TO THE INVESTMENT PERFORMANCE
OF THE CORRESPONDING PORTFOLIO OF THE MUTUAL FUND IN WHICH THE INVESTMENT
ACCOUNT INVESTS. THE VALUE OF SUCH ASSETS IS NOT GUARANTEED. ARTICLE 5 OF THE
CONTRACT EXPLAINS THE VALUATION OF SUCH ASSETS.
P-12536 (DCPMFVA)
Conv (SBR)GW
United Life Insurance Company(R)
▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇ ▇. ▇▇▇ ▇▇▇
▇▇▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇
CONTRACT NUMBER: ____________________
CONTRACT HOLDER: _____________________
PARTICIPANT NAME: _____________________
SOCIAL SECURITY NUMBER:______________
American United Life Insurance Company (AUL) hereby certifies that the
Contractholder and AUL have entered into a Multiple-Fund Group Variable Annuity
Contract (the Contract) in connection with the Contractholder's deferred
compensation plan, and that AUL has created an account in your name to receive
contributions from the Contractholder for your benefit pursuant to the Contract.
The only parties to the Contract are the Contractholder and AUL. All rights and
benefits are determined in accordance with the provisions of the Contract.
Benefits under the Contract will be paid at the Contractholder's direction. AUL
may make payment directly to a participant or beneficiary on the
Contractholder's behalf.
Any amendments to or changes in the Contract will be binding and conclusive on
each participant and beneficiary.
All communications should be directed to the Contractholder.
AMERICAN UNITED LIFE INSURANCE COMPANY
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Secretary
D.C.P. MULTIPLE FUND
GROUP VARIABLE ANNUITY CERTIFICATE
THE ASSETS HELD IN ANY INVESTMENT ACCOUNT FOR WHICH THE CONTRACT MAKES PROVISION
MAY INCREASE OR DECREASE IN DOLLAR VALUE ACCORDING TO THE INVESTMENT PERFORMANCE
OF THE CORRESPONDING PORTFOLIO OF THE MUTUAL FUND IN WHICH THE INVESTMENT
ACCOUNT INVESTS. THE VALUE OF SUCH ASSETS IS NOT GUARANTEED. ARTICLE 5 OF THE
CONTRACT EXPLAINS THE VALUATION OF SUCH ASSETS.
P-12536 (DCPMFVA)
Conv (SBR)GW
AMENDMENT
TO
AUL AMERICAN SERIES DCP MULTIPLE-FUND
GROUP VARIABLE ANNUITY CONTRACT NUMBER GAXX,XXX
(THE CONTRACT)
ISSUED BY
AMERICAN UNITED LIFE INSURANCE COMPANY
(AUL)
TO
ABC COMPANY
(THE CONTRACTHOLDER)
The Effective Date of this Amendment is .
The Contract is hereby amended as follows:
With regard to the following Section of the Contract, this Amendment supersedes
any amendment identified as P-12518(NBR).AMD which may be effective on the same
date.
By deleting Section 9.1 of Article 9 and by substituting in lieu thereof the
following:
9.1 Ownership: The Contractholder is the owner of the contract and may agree
with AUL to any change or amendment of it without the consent of any other
person or entity. No other person or entity shall have any right, title, or
interest in this contract until such right, title, or interest is actually
made available to them. No benefit or privilege under the contract may be
sold, assigned, discounted, or pledged as collateral for a loan, as
security for the performance of an obligation, or for any other purpose to
any person or entity other than AUL.
AUL shall have no obligation to make any payment or distribution except as
specified in this contract.
AMERICAN UNITED LIFE INSURANCE COMPANY
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Chairman of the Board,
President, & Chief Executive Officer
Attest
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Secretary
p12518(nbr).sbjpa.amd
AMENDMENT
TO
AUL AMERICAN SERIES DCP MULTIPLE-FUND GROUP VARIABLE ANNUITY
CONTRACT NUMBER GAXX,XXX
(THE CONTRACT)
ISSUED BY
AMERICAN UNITED LIFE INSURANCE COMPANY
(AUL)
TO
ABC COMPANY
(THE CONTRACTHOLDER)
The Effective Date of this Amendment is .
The Contract is hereby amended as follows:
With regard to the following Section of the Contract, this Amendment supersedes
any amendment identified as P-12518(BR).AMD which may be effective on the same
date.
By deleting Section 9.1 of Article 9 and by substituting in lieu thereof the
following:
9.1 Ownership: The Contractholder is the owner of the contract and may agree
with AUL to any change or amendment of it without the consent of any other
person or entity. No other person or entity shall have any right, title, or
interest in this contract until such right, title, or interest is actually
made available to them. No benefit or privilege under the contract may be
sold, assigned, discounted, or pledged as collateral for a loan, as
security for the performance of an obligation, or for any other purpose to
any person or entity other than AUL.
AUL shall have no obligation to make any payment or distribution except as
specified in this contract.
AMERICAN UNITED LIFE INSURANCE COMPANY
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Chairman of the Board,
President, & Chief Executive Officer
Attest
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Secretary
p12518(mbr).sbjpa.amd
AMENDMENT
TO
AUL AMERICAN SERIES DCP MULTIPLE-FUND
GROUP VARIABLE ANNUITY CONTRACT NUMBER GAXX,XXX
(THE CONTRACT)
ISSUED BY
AMERICAN UNITED LIFE INSURANCE COMPANY
(AUL)
TO
ABC COMPANY
(THE CONTRACTHOLDER)
The Effective Date of this Amendment is .
The Contract is hereby amended as follows:
With regard to the following Section of the Contract, this Amendment supersedes
any amendment identified as P-12518(BR).AMD which may be effective on the same
date.
By deleting Section 9.1 of Article 9 and by substituting in lieu thereof the
following:
9.1 Ownership: The Contractholder is the owner of the contract and may agree
with AUL to any change or amendment of it without the consent of any other
person or entity. No other person or entity shall have any right, title, or
interest in this contract until such right, title, or interest is actually
made available to them. No benefit or privilege under the contract may be
sold, assigned, discounted, or pledged as collateral for a loan, as
security for the performance of an obligation, or for any other purpose to
any person or entity other than AUL.
AUL shall have no obligation to make any payment or distribution except as
specified in this contract.
AMERICAN UNITED LIFE INSURANCE COMPANY
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Chairman of the Board,
President, & Chief Executive Officer
Attest
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Secretary
p12518(br)sbjpa.amd
AMENDMENT
TO
AUL AMERICAN SERIES DCP MULTIPLE-FUND
GROUP VARIABLE ANNUITY CONTRACT NUMBER GAXX,XXX
(THE CONTRACT)
ISSUED BY
AMERICAN UNITED LIFE INSURANCE COMPANY
(AUL)
TO
ABC COMPANY
(THE CONTRACTHOLDER)
The Effective Date of this Amendment is .
The Contract is hereby amended as follows:
With regard to the following Section of the Contract, this Amendment supersedes
any amendment identified as P-12518(NBR).II.AMD which may be effective on the
same date.
By deleting Section 9.1 of Article 9 and by substituting in lieu thereof the
following:
9.1 Ownership: The Contractholder is the owner of the contract and may agree
with AUL to any change or amendment of it without the consent of any other
person or entity. No other person or entity shall have any right, title, or
interest in this contract until such right, title, or interest is actually
made available to them. No benefit or privilege under the contract may be
sold, assigned, discounted, or pledged as collateral for a loan, as
security for the performance of an obligation, or for any other purpose to
any person or entity other than AUL.
AUL shall have no obligation to make any payment or distribution except as
specified in this contract.
AMERICAN UNITED LIFE INSURANCE COMPANY
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Chairman of the Board,
President, & Chief Executive Officer
Attest
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Secretary
p-12518(nbr).II.sbjpa.amd
AMENDMENT
TO
AUL AMERICAN SERIES DCP MULTIPLE-FUND GROUP VARIABLE ANNUITY
CONTRACT NUMBER GAXX,XXX
(THE CONTRACT)
ISSUED BY
AMERICAN UNITED LIFE INSURANCE COMPANY
(AUL)
TO
ABC COMPANY
(THE CONTRACTHOLDER)
The Effective Date of this Amendment is .
The Contract is hereby amended as follows:
With regard to the following Section of the Contract, this Amendment supersedes
any amendment identified as P-12518(BR).II.AMD which may be effective on the
same date.
By deleting Section 9.1 of Article 9 and by substituting in lieu thereof the
following:
9.1 Ownership: The Contractholder is the owner of the contract and may agree
with AUL to any change or amendment of it without the consent of any other
person or entity. No other person or entity shall have any right, title, or
interest in this contract until such right, title, or interest is actually
made available to them. No benefit or privilege under the contract may be
sold, assigned, discounted, or pledged as collateral for a loan, as
security for the performance of an obligation, or for any other purpose to
any person or entity other than AUL.
AUL shall have no obligation to make any payment or distribution except as
specified in this contract.
AMERICAN UNITED LIFE INSURANCE COMPANY
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Chairman of the Board,
President, & Chief Executive Officer
Attest
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Secretary
p12518(mbr).II.sbjpa.amd
AMENDMENT
TO
AUL AMERICAN SERIES DCP MULTIPLE-FUND
GROUP VARIABLE ANNUITY CONTRACT NUMBER GAXX,XXX
(THE CONTRACT)
ISSUED BY
AMERICAN UNITED LIFE INSURANCE COMPANY
(AUL)
TO
ABC COMPANY
(THE CONTRACTHOLDER)
The Effective Date of this Amendment is .
The Contract is hereby amended as follows:
With regard to the following Section of the Contract, this Amendment supersedes
any amendment identified as P-12518(BR).II.AMD which may be effective on the
same date.
By deleting Section 9.1 of Article 9 and by substituting in lieu thereof the
following:
9.1 Ownership: The Contractholder is the owner of the contract and may agree
with AUL to any change or amendment of it without the consent of any other
person or entity. No other person or entity shall have any right, title, or
interest in this contract until such right, title, or interest is actually
made available to them. No benefit or privilege under the contract may be
sold, assigned, discounted, or pledged as collateral for a loan, as
security for the performance of an obligation, or for any other purpose to
any person or entity other than AUL.
AUL shall have no obligation to make any payment or distribution except as
specified in this contract.
AMERICAN UNITED LIFE INSURANCE COMPANY
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Chairman of the Board,
President, & Chief Executive Officer
Attest
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Secretary
p-12518(br).II.sbjpa.amd
AMENDMENT
TO THE
AUL AMERICAN SERIES
DCP MULTIPLE-FUND GROUP VARIABLE ANNUITY
CONTRACT NUMBER GA XX,XXXX
(THE CONTRACT)
ISSUED BY
AMERICAN UNITED LIFE INSURANCE COMPANY
(AUL)
TO
ABC COMPANY
(THE CONTRACTHOLDER)
The Effective Date of this Amendment is January 1, 1998.
AUL and the Contractholder hereby agree, by signing below, that the Contract is
hereby amended as follows:
By deleting the corresponding Sections or Subsections of the Contract and by
substituting the following Sections or Subsections in lieu thereof, and by
making any required corresponding changes in the Table of Contents of the
Contract:
1.23 "Withdrawal Charge" means a charge taken by AUL equal to a percentage of
the Account Value withdrawn under this contract, other than withdrawals to
provide those benefits discussed in Section 4.7, as provided by the Plan,
where the percentage varies by the Participant Account Year in which the
withdrawal is made. The first Participant Account Year begins on the date
when AUL establishes a Participant Account and credits the initial
Contribution for the Participant, and ends on the day immediately preceding
the next anniversary of such date. Each Participant Account Year thereafter
begins on such an anniversary date and ends on the day immediately
preceding the next succeeding anniversary date. The Withdrawal Charge
percentage is as follows:
During Withdrawal Charge
Participant Account Years Percentage
1 - 5 8%
6 - 10 4%
Thereafter 0%
In no event will the cumulative total of all Withdrawal Charges, including
those previously assessed against any amount withdrawn from a Participant
Account, exceed 9% of total Contributions allocated to that Participant
Account.
3.2 How Contributions are Handled:
(a) Contributions received at the Home Office shall be credited to the
appropriate subaccounts of each of the Participant Accounts as
directed by the Contractholder in written allocation instructions.
(b) Within any one Participant Account, the amount so credited shall be
allocated to an Investment Option in increments elected in a form
acceptable to AUL by the Contractholder or by that person designated
to AUL by the Contractholder. If no Investment Option election is made
with respect to a particular Contribution to any Participant Account,
AUL shall process such credits in accordance with the Investment
Option election applicable to the immediately preceding
p-12518br.adm
Contribution. The Contractholder or such designated person may change
an Investment Option election with respect to future allocations to
the applicable Participant Account by giving new Investment Option
elections to AUL at its Home Office in a form acceptable to AUL.
(c) The initial Contribution for a Participant shall be allocated to the
Participant Account no later than the close of business on the second
business day of AUL after the later of (1) the business day that AUL
receives the initial Contribution at its Home Office, or (2) the
business day that AUL receives, at its Home Office, the data required
to establish the Participant Account, instructions regarding the
amount of the initial Contribution for the Participant, and Investment
Option elections regarding the initial Contribution.
(d) If the data required to establish a Participant Account and
instructions regarding the amount of a Contribution for the
Participant are not received by AUL at its Home Office within 5
business days after AUL first receives that Contribution, AUL shall
return that Contribution to the Contractholder unless the
Contractholder consents to AUL retaining that Contribution until the
earlier of (i) the date AUL receives such data and instructions and,
therefore, can properly allocate that Contribution to the Participant
Account or (ii) 25 days from the date that Contribution is received by
AUL.
(e) If the data required to establish a Participant Account, including any
annuity enrollment form required by AUL, and instructions regarding
the amount of a Contribution for the Participant are received, but an
Investment Option election for that Participant is not received, by
AUL at its Home Office as of the date AUL receives that Contribution,
AUL shall allocate that Contribution to the Investment Option election
identified in the Participant's annuity enrollment form, which is
generally the AUL American Money Market Investment Account. If AUL
subsequently receives a proper Investment Option election for the
Participant, AUL shall then transfer such amounts credited to the AUL
American Money Market Investment Account or other Investment Option
identified in the Participant's annuity enrollment form, plus gains or
minus losses thereon, to another Investment Option, if such election
so directs.
(f) Contributions for a Participant subsequent to the initial Contribution
shall be allocated to the Participant Account as of the close of
business on the later of (1) the Valuation Period in which AUL
receives that Contribution at its Home Office or (2) the Valuation
Period in which AUL receives, at its Home Office, the data required to
establish the Participant Account, instructions regarding the amount
of that Contribution for the Participant, and Investment Option
elections.
3.4 Transfers:
(a) Subject to the limitations of Section 3.5, the Contractholder, or that
person designated to AUL by the Contractholder, may direct AUL, in a
form acceptable to AUL, to transfer the amounts credited to an
Investment Option to any other Investment Option during the
Accumulation Period. Any transfer from an Investment Account shall be
effective as of the close of business on the Valuation Date that AUL
receives that transfer direction at its Home Office.
(b) AUL shall make the transfer as requested within 3 days from the date a
proper request is received by AUL at its Home Office, except as AUL
may be permitted to defer such payment of amounts withdrawn from the
Variable Account in accordance with appropriate provisions of the
federal securities laws. AUL reserves the right to defer a transfer of
amounts from the Fixed Interest Account for a period of up to 6 months
after AUL receives the transfer request at its Home Office.
3.5 Limitations on Transfers:
p-12518br.adm
(a) The minimum transfer from the Participant Account's share of any
Investment Option is the lesser of $500 or the Participant Account's
entire share of that Investment Option as of the close of business on
the Valuation Date that AUL receives that transfer direction at its
Home Office. However, if that transfer reduces the Participant
Account's remaining share of that Investment Option to less than $500,
the entire remaining share shall also be transferred.
(b) Amounts transferred from the Fixed Interest Account on behalf of a
Participant during any Contract Year shall not exceed 20% of the
Participant Account's share of the Fixed Interest Account determined
as of the later of the Contract Date or the Contract Anniversary
immediately preceding the request for transfer. Notwithstanding the
previous sentence, if the Participant Account's share of the Fixed
Interest Account is less than $2,500 determined as of the later of the
Contract Date or the Contract Anniversary immediately preceding the
request for transfer, the amount transferrable from the Fixed Interest
Account for that Contract Year is the lesser of $500 or the
Participant Account's entire share of the Fixed Interest Account as of
the close of business on the Valuation Date that AUL receives that
transfer direction at its Home Office. And if that transfer reduces
the Participant Account's remaining share of the Fixed Interest
Account to less than $500, the entire remaining share shall also be
transferred.
4.1 Election of Annuity Options: At the written request of the Contractholder
pursuant to Section 4.7, AUL shall apply all or a portion of the Account
Value (subject to Section 6.5) of a Participant Account for the purpose of
providing a fixed payment annuity under the Plan. Upon receipt of a request
for an annuity, AUL is hereby authorized by the Contractholder to value and
transfer the Participant Account's share of the Variable Account to the
Fixed Interest Account as of the date provided in Section 4.9(d). Such
transferred amounts shall be held in the Fixed Interest Account until such
time as such amounts are used to provide an annuity under the Plan. The
Contractholder request shall include certification as to the purpose for
the annuity and the election of one of the annuity options listed in
Section 4.2. The amount of any annuity shall be computed from the Table of
Immediate Annuities then included in this contract, except as provided
under Section 4.4.
4.7 "Benefit Responsive" Plan Benefits and Annuities: Subject to the
limitations provided in Section 4.9, at any time prior to termination of
the contract pursuant to the provisions of Article 8, the Contractholder
may direct AUL to withdraw all or a portion of the Account Value (subject
to Section 6.5) of a Participant Account for the purpose of providing:
(a) an annuity in accordance with the Annuity Options shown in Section
4.2, as directed by the Contractholder, for benefits as provided by
the Plan (other than Plan termination benefits); or
(b) a cash lump-sum payment to the Contractholder or to whomever the
Contractholder directs to pay benefits as provided by the Plan (other
than Plan termination benefits) for retirement, death, disability,
termination of employment, unforeseen emergencies, or required minimum
distribution benefits pursuant to Internal Revenue Code Section
401(a)(9) and Regulations issued thereunder.
4.8 Other Plan Benefits Payable in Cash: Subject to the limitations provided in
Section 4.9, at any time prior to termination of the contract pursuant to
the provisions of Article 8, the Contractholder may direct AUL to make a
cash payment from a Participant Account to the Contractholder or to
whomever the Contractholder directs for the purpose of providing Plan
benefits other than those provided in Section 4.7(b). If it is necessary to
withdraw the entire Account Value of a Participant Account to make such
payment, the amount paid shall equal the Withdrawal Value, minus any
Section 6.5 charges. If it is not necessary to withdraw the entire Account
Value to make such payment, AUL shall reduce the Account Value of the
Participant Account by an amount sufficient to make the cash payment
requested and to cover the Withdrawal Charge and any Section 6.5 charges.
Notwithstanding the previous paragraph, in the first Contract Year in which
a Participant Account is established, the Contractholder may withdraw from
that Participant Account up to 10% of the sum of the
p-12518br.adm
Account Value of that Participant Account (determined as of the later of
the Contract Date or the Contract Anniversary immediately preceding the
request for the withdrawal) plus Contributions made during that Contract
Year, without application of the Withdrawal Charge. In the next succeeding
Contract Year, the Contractholder may also withdraw from that Participant
Account up to 10% of the sum of the Account Value of that Participant
Account (determined as of the Contract Anniversary immediately preceding
the request for the withdrawal) plus Contributions made during that
Contract Year, without application of the Withdrawal Charge. In any
subsequent Contract Year, the Contractholder may withdraw from that
Participant Account up to 10% of the Account Value of that Participant
Account (determined as of the Contract Anniversary immediately preceding
the request for the withdrawal) without application of the Withdrawal
Charge.
4.9 Conditions for Payment of Benefits:
(a) Any benefit request submitted by the Contractholder shall include
certification as to the purpose of the request for payment. The
Contractholder assumes full responsibility for determining whether any
benefit payment is permitted under applicable law and under the terms
of the Plan. AUL may rely solely upon the representations of the
Contractholder made in the benefit request.
(b) Withdrawals from a Participant Account's share of any Investment
Option may not be made in an amount less than the smaller of $500 or
the Participant Account's entire share of the Investment Option as of
the close of business on the Valuation Date that AUL receives that
withdrawal request (or due proof of death, if received later), in a
form acceptable to AUL, at its Home Office. If a withdrawal reduces
the Participant Account's share of an Investment Option to less than
$500, such remaining share shall also be withdrawn.
(c) Withdrawals from a Participant Account's share of the Fixed Interest
Account shall be made on a first-in/first-out basis so that all or a
portion of the amounts credited to the Participant Account's share of
the Fixed Interest Account which have been on deposit for the longest
period of time, as well as the interest credited thereon, shall be
withdrawn first.
(d) A withdrawal request shall be effective, and the Account Value to be
applied pursuant to Sections 4.1, 4.7, or 4.8 shall be determined, as
of the close of business on the Valuation Date that AUL receives a
proper withdrawal request (or due proof of death, if received later),
in a form acceptable to AUL, at its Home Office.
(e) AUL shall pay any cash lump sum to the Contractholder or to whomever
the Contractholder directs within 3 days from the appropriate
Valuation Date as determined in Subsection (d) above, except as AUL
may be permitted to defer such payment of amounts withdrawn from the
Variable Account in accordance with appropriate provisions of the
federal securities laws. AUL reserves the right to defer the payment
of amounts withdrawn from the Fixed Interest Account for a period of
up to 6 months after AUL receives the withdrawal request at its Home
Office.
(f) No withdrawals shall be permitted prior to the termination of this
contract except as provided in Sections 4.7 and 4.8.
5.2 Accumulation Units: Any amounts allocated to any Investment Account on
behalf of a Participant shall be credited to his Participant Account in the
form of Accumulation Units on the basis of the value of such units in that
Investment Account as of the later of (1) the end of the Valuation Period
on which such amounts are received by AUL at its Home Office or (2) the end
of the Valuation Period on which the data required to establish the
Participant Account and allocate such amounts to the Participant Account
and to Investment Options are received by AUL at its Home Office. However,
if the initial Contribution for a Participant is allocated pursuant to
Section 3.2(c) on the next succeeding Valuation Period, the unit value as
of the end of that Valuation Period shall be used. Such crediting shall be
made separately for amounts allocated to each Investment Account. The
number of Accumulation Units in each Investment Account credited to each
Participant Account as of any Valuation Period shall be determined by
dividing the amounts allocated to that Investment Account for that
Participant Account as of such Valuation Period by the dollar value of one
Accumulation Unit in that Investment Account as of the close of business on
the applicable Valuation Period. The number of Accumulation Units thus
determined shall not be changed by any subsequent change in the dollar
value of the Accumulation Units.
By adding the following first paragraph to Section 6.3:
p-12518br.adm
6.3 Administrative Charge:
AUL hereby waives the administrative charge described hereafter in this
Section 6.3.
By adding the following first paragraph to Section 7.3:
7.3 Right of AUL to Change Charges:
Because the administrative charge described in Section 6.3 has been waived
by AUL, the maximum administrative charge discussed hereafter in this
Section 7.3 shall be $0.00.
9.15 Voting:
(a) AUL is the legal owner of the shares of a Mutual Fund or Mutual Fund
Portfolio held by the Investment Accounts of the Variable Account. In
accordance with its view of present law, AUL shall exercise voting
rights attributable to the shares of each Mutual Fund or Mutual Fund
Portfolio held in the Investment Accounts at any regular and special
meetings of the shareholders of a Mutual Fund on matters requiring
shareholder voting under The Investment Company Act of l940 or other
applicable laws. AUL shall exercise these voting rights based on
instructions received from persons having the voting interest in
corresponding Investment Accounts of the Variable Account. However, if
The Investment Company Act of l940 or any regulations thereunder
should be amended, or if the present interpretation thereof should
change, and as a result AUL determines that it is permitted to vote
the shares of a Mutual Fund or Mutual Fund Portfolio in its own right,
it may elect to do so. AUL will vote shares of any Investment Account,
if any, that it owns beneficially in its own discretion, except that
if a Mutual Fund or Mutual Fund Portfolio offers its shares to any
insurance company separate account that funds variable life insurance
contracts or if otherwise required by applicable law, AUL will vote
its own shares in the same proportion as the voting instructions that
are received in a timely manner for contracts and Participant Accounts
participating in the Investment Account.
(b) The person having the voting interest under this contract is the
Contractholder. Unless otherwise required by applicable law, the
number of Mutual Fund or Mutual Fund Portfolio shares as to which
voting instructions may be given to AUL is determined by dividing the
value of all of the Accumulation Units of the corresponding Investment
Account attributable to this contract on a particular date by the net
asset value per share of that Mutual Fund or Mutual Fund Portfolio as
of the same date. Fractional votes will be counted. The number of
votes as to which voting instructions may be given will be determined
as of the date coincident with the date established by the applicable
Mutual Fund or Mutual Fund Portfolio for determining shareholders
eligible to vote at the meeting of that Mutual Fund. If required by
the Securities and Exchange Commission or under any contract with any
of the Mutual Funds made available by AUL, AUL reserves the right to
determine in a different fashion the voting rights attributable to the
shares of a Mutual Fund or Mutual Fund Portfolio.
This Amendment shall be null and void unless it is properly executed by the
Contractholder and received by AUL at its Home Office no later than
xxxxxxxxxxxx, xxxx, unless countersigned by AUL after such date.
CONTRACTHOLDER AUL
By ______________________________ By _________________________________
Title ___________________________ Title ______________________________
Date_____________________________ Date _______________________________
AMENDMENT
TO THE
AUL AMERICAN SERIES
DCP MULTIPLE-FUND GROUP VARIABLE ANNUITY
CONTRACT NUMBER GA 73,101 (THE CONTRACT)
ISSUED BY
AMERICAN UNITED LIFE INSURANCE COMPANY (AUL)
TO
__________________________________
(THE CONTRACTHOLDER)
The Effective Date of this Amendment is the date that it is signed by AUL.
AUL and the Contractholder hereby agree, by signing below, that the Contract is
hereby amended as follows:
By deleting the last paragraph on the face page and by substituting the
following last paragraph in lieu thereof:
ACCUMULATION UNITS IN ANY INVESTMENT ACCOUNT FOR WHICH THIS CONTRACT MAKES
PROVISION MAY INCREASE OR DECREASE IN DOLLAR VALUE ACCORDING TO THE INVESTMENT
PERFORMANCE OF THE UNDERLYING ASSETS IN THE CORRESPONDING MUTUAL FUND OR MUTUAL
FUND PORTFOLIO IN WHICH THE INVESTMENT ACCOUNT INVESTS. THE VALUE OF SUCH ASSETS
AND ACCUMULATION UNITS IS NOT GUARANTEED. ARTICLE 5 OF THIS CONTRACT EXPLAINS
THE VALUATION OF SUCH ASSETS AND ACCUMULATION UNITS.
By deleting the corresponding Sections or Subsections of the Contract and by
substituting the following Sections or Subsections in lieu thereof, and by
making any required corresponding changes in the Table of Contents of the
Contract:
1.4 "Contract Anniversary" means the first day of the second Contract Year and
each subsequent Contract Year. Each Contract Anniversary after the First
Contract Anniversary shall be the same day of the same month as the day and
month which is stated on the face page of this contract for the First
Contract Anniversary.
By deleting the first sentence of Section 1.7 and by substituting the
following first sentence in lieu thereof:
1.7 "Contributions" means amounts paid to AUL by the Contractholder pursuant to
the Plan, including amounts transferred to this contract from another AUL
group annuity contract, which are credited to a Participant Account
maintained hereunder.
1.12 "Investment Account" means each subaccount of the Variable Account which is
maintained by AUL and made available to the Contractholder by AUL and
identified in Schedule A of the contract. Schedule A of the contract may be
amended by AUL from time to time as described in Section 3.3. Amounts
allocated to any Investment Account identified in Schedule A of the
contract shall be invested in the shares of the corresponding Mutual Fund
or Mutual Fund Portfolio listed in the current prospectus for the Variable
Account.
p12518(NBR).amd
1.15 "Mutual Fund" means the AUL American Series Fund, Inc., a diversified,
open-end management investment company registered under The Investment
Company Act of l940, and any other such open-end management investment
company made available by AUL, as listed in Schedule A.
1.19 "Portfolio" (also known as a "Mutual Fund Portfolio") means a portfolio
established within a particular Mutual Fund as described in that prospectus
for that Mutual Fund, as such prospectus may be amended or supplemented
from time to time.
1.23 "Withdrawal Charge" means a charge taken by AUL equal to a percentage of
the Account Value withdrawn under this contract, other than withdrawals to
provide those benefits discussed in Section 4.1 or 4.7, as provided by the
Plan, where the percentage varies by the Participant Account Year in which
the withdrawal is made. The first Participant Account Year begins on the
date when AUL establishes a Participant Account and credits the initial
Contribution for the Participant, and ends on the day immediately preceding
the next anniversary of such date. Each Participant Account Year thereafter
begins on such an anniversary date and ends on the day immediately
preceding the next succeeding anniversary date. The Withdrawal Charge
percentage is as follows:
During Withdrawal Charge
Participant Account Years Percentage
1 - 5 8%
6 - 10 4%
Thereafter 0%
In no event will the cumulative total of all Withdrawal Charges, including
those previously assessed against any amount withdrawn from a Participant
Account, exceed 9% of total Contributions allocated to that Participant
Account.
3.2 How Contributions are Handled:
(a) Contributions received at the Home Office shall be credited to the
appropriate subaccounts of each of the Participant Accounts as
directed by the Contractholder in written allocation instructions.
(b) (1) The initial Contribution for a Participant shall be credited
and allocated to the Participant Account no later than the close
of business on the second business day of AUL after the later of
(1) the business day that AUL receives the initial Contribution
at its Home Office, or (2) the business day that AUL receives, at
its Home Office, the data required to establish the Participant
Account, instructions regarding the amount of the initial
Contribution for the Participant, and Investment Option election
instructions regarding the initial Contribution.
(2) If the data required to establish a Participant Account and
instructions regarding the amount of a Contribution for the
Participant are not received by AUL at its Home Office within 5
business days after AUL first receives that Contribution, AUL
shall return that Contribution to the Contractholder unless the
Contractholder consents to AUL retaining that Contribution until
the earlier of (i) the date AUL receives such data and
instructions and, therefore, can properly allocate that
Contribution to the Participant Account or (ii) 25 days from the
date that Contribution is received by AUL.
(3) If the data required to establish a Participant Account,
including any annuity enrollment form required by AUL, and
instructions regarding the amount of a Contribution for the
Participant are received, but an Investment Option election
p-12518(NBR).amd
for that Participant is not received, by AUL at its Home Office as of
the date AUL receives that Contribution, AUL shall allocate that
Contribution to the Investment Option election identified in the
Participant's annuity enrollment form, which is generally the AUL
American Money Market Investment Account. If AUL subsequently receives
the data required to establish the Participant Account, instructions
regarding the amount of the Contribution for the Participant, and an
Investment Option election, AUL shall then transfer such amounts
credited to the AUL American Money Market Investment Account or other
Investment Option identified in the Participant's annuity enrollment
form, plus gains or minus losses thereon, to another Investment
Option, if such election so directs.
(c) Contributions for a Participant subsequent to the initial Contribution
shall be credited and allocated to the Participant Account as of the
close of business on the later of (1) the Valuation Period in which
AUL receives that Contribution at its Home Office or (2) the Valuation
Period in which AUL receives, at its Home Office, the data required to
establish the Participant Account, instructions regarding the amount
of that Contribution for the Participant, and Investment Option
election instructions.
(d) Within any one Participant Account, the amount so credited shall be
allocated to an Investment Option in increments elected in a form
acceptable to AUL by the Contractholder or by that person designated
to AUL by the Contractholder. If no investment allocation instruction
is made with respect to any Participant Account, AUL shall process
such credits in accordance with the investment allocation instruction
applicable to the immediately preceding Contribution. The
Contractholder or such designated person may change an investment
allocation instruction with respect to future allocations to the
applicable Participant Account by giving new investment allocation
instructions to AUL at its Home Office in a form acceptable to AUL.
3.3 Addition, Deletion, or Substitution of Investments:
(a) AUL reserves the right, subject to compliance with applicable law, to
make additions to, deletions from, substitution for, or combinations
of, the securities that are held by the Variable Account or any
Investment Account or that the Variable Account or any Investment
Account may purchase. AUL reserves the right to eliminate the shares
of any of the eligible Mutual Funds or Mutual Fund Portfolios and to
substitute shares of, or interests in, another Portfolio of the AUL
American Series Fund, Inc., another open-end, registered investment
company, or another investment vehicle, for shares already purchased
or to be purchased in the future under the contract, if the shares of
any or all eligible Mutual Funds or Mutual Fund Portfolios are no
longer available for investment or if further investment in any or all
eligible Mutual Fund or Mutual Fund Portfolios becomes inappropriate
in view of the purposes of the Variable Account or the contract. Where
required under applicable law, AUL will not substitute any shares
attributable to the Contractholder's interest in the Variable Account
or any Investment Account without notice, Contractholder or
Participant approval, or prior approval of the Securities and Exchange
Commission or a state insurance commissioner, and without following
the filing or other procedures established by applicable state
insurance regulators. Nothing contained herein shall prevent the
Variable Account from purchasing other securities for
p12518(NBR).amd
other series or classes of contracts, or from effecting a conversion
between series or classes of contracts on the basis of requests made
by a majority of other contractholders or as permitted by federal law.
(b) AUL reserves the right to establish additional Investment Accounts,
each of which would invest in the corresponding Mutual Fund or Mutual
Fund Portfolio listed in the current prospectus for the Variable
Account, or in other securities or investment vehicles. AUL reserves
the right to eliminate or combine existing Investment Accounts if
marketing, tax, or investment conditions so warrant. AUL also reserves
the right to provide other Investment Options under this contract at
any time. Subject to any required regulatory approvals, AUL reserves
the right to transfer assets from any Investment Account to another
separate account of AUL or Investment Account.
(c) In the event of any such substitution or change, AUL may, by
appropriate amendment, make such changes in this contract as may be
necessary or appropriate to reflect such substitution or change. If
deemed by AUL to be in the best interests of persons or entities
having voting rights under this contract, the Variable Account may be
operated as a management investment company under The Investment
Company Act of 1940 or any other form permitted by law, it may be
deregistered in the event such registration is no longer required
under The Investment Company Act of 1940, or it may be combined with
other separate accounts of AUL or an affiliate thereof. AUL may take
such action as is necessary to comply with, or to obtain, exemptions
from the Securities and Exchange Commission with regard to the
Variable Account. Subject to compliance with applicable law, AUL also
may combine one or more Investment Accounts and may establish a
committee, board, or other group to manage one or more aspects of the
operation of the Variable Account.
3.4 Transfers:
(a) Subject to the limitations of Section 3.5, the Contractholder, or that
person designated to AUL by the Contractholder, may direct AUL, in a
form acceptable to AUL, to transfer the amounts credited to an
Investment Option to any other Investment Option during the
Accumulation Period. Any transfer from an Investment Account shall be
effective as of the close of business on the Valuation Date that AUL
receives such transfer direction.
3.5 Limitations on Transfers:
(a) The minimum transfer from the Participant Account's share of any
Investment Option is the lesser of $500 or the Participant Account's
entire share of that Investment Option. However, if that transfer
reduces the Participant Account's remaining share of that Investment
Option to less than $500, the entire remaining share shall also be
transferred.
(b) Amounts transferred from the Fixed Interest Account on behalf of a
Participant during any Contract Year shall not exceed 20% of the
Participant Account's share of the Fixed Interest Account determined
as of the later of the Contract Date or the Contract Anniversary
immediately preceding the request for transfer. Notwithstanding the
previous sentence, if the Participant Account's share of the Fixed
Interest Account is less than $2,500 determined as of the later of the
Contract Date or the Contract Anniversary immediately preceding the
request for transfer, the amount transferrable from the Fixed Interest
Account for that Contract Year is the lesser of $500 or the
Participant Account's entire share of the Fixed Interest Account. And
if that transfer reduces the Participant Account's remaining share of
the Fixed Interest Account to less than $500, the entire remaining
share shall also be transferred.
4.1 Election of Annuity Options: At the written request of the Contractholder,
at any time prior to termination of the contract pursuant to the provisions
of Article 8, AUL shall apply all or a portion of the Account Value
(subject to Section 6.5) of a Participant Account to provide a fixed
payment annuity under the Plan. Upon receipt of a request for an annuity,
AUL is hereby authorized by the Contractholder to value and transfer the
Participant Account's share of the Variable Account to the Fixed Interest
Account as of the date provided in Section 4.8(e). Such transferred amounts
shall be held in the Fixed Interest Account until such time as such amounts
are used to provide an annuity under the Plan. The Contractholder request
shall include certification as to the purpose for the annuity and the
election of one of the annuity options listed in Section 4.2. The amount of
any annuity shall be computed from the Table of Immediate Annuities then
included in this contract, except as provided under Section 4.4.
4.7 Death Benefits: At any time prior to termination of the contract pursuant
to the provisions of Article 8, the Contractholder may direct AUL to pay
death benefits as provided by the Plan (other than Plan termination
benefits), subject to the provisions of Subsections 4.8(b) through (g).
Upon receipt at AUL's Home Office of such written instructions from the
Contractholder and of due proof of the Participant's (and, if applicable,
the beneficiary's) death during the Accumulation Period, AUL shall, as
directed by the Contractholder, withdraw all or a portion of the Account
Value (subject to Section 6.5) of a Participant Account to provide an
annuity pursuant to Section 4.1 or to make a cash lump-sum payment to the
Contractholder or to whomever the Contractholder directs.
4.8 Withdrawal Benefits:
(a) Subject to the following provisions of this Section, at any time prior
to termination of the contract pursuant to the provisions of Article
8, the Contractholder may direct AUL to make a cash payment from a
Participant Account to the Contractholder or to whomever the
Contractholder directs for the purpose of providing Plan benefits
permitted under applicable law (other than Plan termination benefits
or death benefits provided in Section 4.7). Such Plan benefits may
include benefits for retirement, disability, termination of
employment, unforeseen emergencies, or required minimum distribution
benefits pursuant to Internal Revenue Code Section 401(a)(9) and
Regulations issued thereunder. If it is necessary to withdraw the
entire Account Value of a Participant Account to make such payment,
the amount paid shall equal the Withdrawal Value, minus any Section
6.5 charges. If it is not necessary to withdraw the entire Account
Value to make such payment, AUL shall reduce the Account Value of the
Participant Account by an amount sufficient to make the cash payment
requested and to cover the Withdrawal Charge and any Section 6.5
charges.
Notwithstanding the previous paragraph, in the first Contract Year in
which a Participant Account is established, the Contractholder may
withdraw from that Participant Account up to 10% of the sum of the
Account Value of that Participant Account (determined as of the later
of the Contract Date or the Contract Anniversary immediately preceding
the request for the withdrawal) plus Contributions made during that
Contract Year, without application of the Withdrawal Charge. In the
next succeeding Contract Year, the Contractholder may also withdraw
from that Participant Account up to 10% of the sum of the Account
Value of that Participant Account (determined as of the Contract
Anniversary immediately preceding the request for the withdrawal) plus
Contributions made during that Contract Year, without application of
the Withdrawal Charge. In any subsequent Contract Year, the
Contractholder may withdraw from that Participant Account up to 10% of
the Account Value of that Participant Account (determined as of the
Contract Anniversary immediately preceding the request for the
withdrawal) without application of the Withdrawal Charge.
(b) Any benefit request submitted by the Contractholder shall include
certification as to the purpose of the request for payment. The
Contractholder assumes full responsibility for determining whether any
benefit payment is permitted under applicable law and under the terms
of the Plan. AUL may rely solely upon the representations of the
Contractholder made in the benefit request.
(c) Withdrawals from a Participant Account's share of any Investment
Option may not be made in an amount less than the smaller of $500 or
the Participant Account's entire share of the Investment Option. If a
withdrawal reduces the Participant Account's share of an Investment
Option to less than $500, such remaining share shall also be
withdrawn.
(d) Withdrawals from a Participant Account's share of the Fixed Interest
Account shall be made on a first-in/first-out basis so that all or a
portion of the amounts credited to the Participant Account's share of
the Fixed Interest Account which have been on deposit for the longest
period of time, as well as the interest credited thereon, shall be
withdrawn first.
(e) A withdrawal request shall be effective, and the Account Value to be
applied pursuant to Sections 4.1, 4.7, or 4.8 shall be determined, as
of the close of business on the Valuation Date that AUL receives a
proper withdrawal request (or due proof of death, if received later),
in a form acceptable to AUL, at its Home Office.
(f) AUL shall pay any cash lump sum to the Contractholder or to whomever
the Contractholder directs within 7 days from the appropriate
Valuation Date as determined in Subsection (e) above, except as AUL
may be permitted to defer such payment of amounts withdrawn from the
Variable Account in accordance with appropriate provisions of the
federal securities laws. AUL reserves the right to defer the payment
of amounts withdrawn from the Fixed Interest Account for a period of
up to 6 months after AUL receives the withdrawal request at its Home
Office.
(g) No withdrawals shall be permitted prior to the termination of this
contract except as provided in Sections 4.1, 4.7, and this Section
4.8.
5.1 Valuation of Mutual Fund or Mutual Fund Portfolio Assets: All assets of
each Mutual Fund or Mutual Fund Portfolio shall be valued as provided in
the prospectus for the applicable Mutual Fund or Mutual Fund Portfolio as
such prospectus may be amended or supplemented from time to time.
5.2 Accumulation Units: Any amounts allocated to any Investment Account on
behalf of a Participant shall be credited to his Participant Account in the
form of Accumulation Units on the basis of the value of such units in that
Investment Account as of the later of (1) the end of the Valuation Period
on which such amounts are received by AUL at its Home Office or (2) the end
of the Valuation Period on which the data required to establish the
Participant Account and allocate such amounts to the Participant Account
and to Investment Options are received by AUL at its Home Office. However,
if the initial Contribution for a Participant is allocated pursuant to
Section 3.2(b)(1) on the next succeeding Valuation Period, the unit value
as of the end of that Valuation Period shall be used. Such crediting shall
be made separately for amounts allocated to each Investment Account. The
number of Accumulation Units in each Investment Account credited to each
Participant Account as of any Valuation Period shall be determined by
dividing the amounts allocated to that Investment Account for that
Participant Account as of such Valuation Period by the dollar value of one
Accumulation Unit in that Investment Account as of the close of business on
the applicable Valuation Period. The number of Accumulation Units thus
determined shall not be changed by any subsequent change in the dollar
value of the Accumulation Units.
5.3 Value of Accumulation Units: The value of an Accumulation Unit in the AUL
American Equity, Bond, Money Market, and Managed Investment Accounts was
established at $1.00 as of April 12, 1990. The value of an Accumulation
Unit in any other Investment Account available under this contract shall be
established at $1.00 as of the date of the first deposit to such Investment
Account. The value of an Accumulation Unit in each Investment Account as of
any Valuation Period thereafter is equal to the dollar value of one
Accumulation Unit in that Investment Account as of the immediately
preceding Valuation Period multiplied by the Net Investment Factor, as
defined in Section 5.4, for that Investment Account for the current
Valuation Period.
The value of an Accumulation Unit for each Investment Account shall be
determined for each Valuation Period before giving effect to any additions,
withdrawals, or transfers. After such determination, the additions,
withdrawals, or transfers which are effective as of that day shall then be
made.
5.4 Determining the Net Investment Factor: The Net Investment Factor for each
Investment Account for any Valuation Period is determined by dividing (a)
by (b), and then subtracting (c) from that result, where:
(a) is equal to:
(1) the net asset value of a Mutual Fund or Mutual Fund Portfolio
share held in the Investment Account determined as of the end of
the current Valuation Period, plus
(2) the per share amount of any dividend or other distribution, if
any, paid by the Mutual Fund or Mutual Fund Portfolio during the
current Valuation Period, plus or minus
(3) any credit or charge for any taxes paid or reserved for by AUL
during the current Valuation Period which are determined by AUL
to be attributable to operation of the Investment Account;
(b) is the net asset value of a Mutual Fund or Mutual Fund Portfolio share
held in the Investment Account determined as of the end of the
immediately preceding Valuation Period; and
(c) is a daily charge factor determined by AUL to reflect the charges
assessed against the assets of the Investment Account for mortality
and expense risks, as authorized by Section 6.1.
6.1 Mortality Risk and Expense Risk Charges: AUL shall deduct a daily mortality
risk charge and a daily expense risk charge equal to the daily equivalent
of an annual combined charge of 1.25%
p12518(NBR).amd
against the average daily net assets of each Investment Account. These
charges shall be reflected in the Net Investment Factor as provided in
Section 5.4(c).
6.2 Mutual Fund or Mutual Fund Portfolio Expenses: A Mutual Fund or Mutual Fund
Portfolio shall pay any investment advisory fee and certain other expenses,
which may include its ordinary operational and organizational expenses, and
any extraordinary expenses, as described in the current prospectus for that
Mutual Fund or Mutual Fund Portfolio as it may be amended or supplemented
from time to time. These expenses may vary from year to year. The net asset
value of each Mutual Fund or Mutual Fund Portfolio share reflects such
investment advisory fee and other expenses which are deducted from the
assets of such Mutual Fund or Mutual Fund Portfolio.
6.3 Administrative Charge: AUL shall deduct an administrative charge per
Contract Quarter equal to the lesser of $7.50 or 0.5% of the Account Value
on the last day of each Contract Quarter from each Participant Account in
existence on such day for as long as the Participant Account is in effect
during the Accumulation Period. This charge is to be prorated among each
subaccount of the Participant Account which corresponds to each Investment
Option utilized under this contract by that Participant Account. If the
entire balance of a Participant Account is applied or withdrawn before the
last day of the Contract Quarter pursuant to Sections 4.1, 4.7, 4.8, 8.2,
or 8.4, the administrative charge attributable to the period of time which
has elapsed since the first day of the Contract Quarter in which such
application or withdrawal of funds is made shall not be deducted from the
amount applied or withdrawn.
6.5 Other Charges: AUL reserves the right to deduct the appropriate premium tax
charge at the time annuity payments commence pursuant to Sections 4.1 and
4.7 or such other time that premium taxes are incurred by AUL. AUL also
reserves the right to deduct the appropriate charges for federal, state, or
local income taxes incurred by AUL that are attributable to the Variable
Account and its Investment Accounts.
6.6 Reduction or Waiver of Certain Charges: AUL may reduce or waive the amount
of the Withdrawal Charge or the administrative charge discussed in Section
6.3 where the expenses associated with the sale of this contract or the
administrative costs associated with this contract are reduced, or where
this contract is sold to the directors or employees of AUL or any of its
affiliates, or to directors or any employees of the AUL American Series
Fund, Inc.
8.1 Right of Contractholder to Terminate: This contract shall terminate if the
Contractholder gives written notice to AUL that this contract is to be
terminated. In such event, the termination notice shall be effective as of
the close of business on the Valuation Date that AUL receives a proper
written Contractholder notice at its Home Office. This date shall be the
effective date of termination. This contract shall also terminate
automatically as of the date that there are no Participant Accounts
maintained hereunder.
9.2 AUL's Annual Statement: No provision or condition of this contract shall be
deemed to control, determine, or modify any annual statement of AUL made to
any insurance department, contractholder, regulatory body, or other person,
nor shall anything in such annual statement be deemed to control,
determine, or modify the valuation provided for in this contract, nor the
values determined, nor the market, book, or other value of any asset in any
Investment Account or Mutual Fund or Mutual Fund Portfolio, nor any of the
other provisions and conditions of this contract.
p12518(NBR).amd
against the average daily net assets of each Investment Account. These
charges shall be reflected in the Net Investment Factor as provided in
Section 5.4(c).
6.2 Mutual Fund or Mutual Fund Portfolio Expenses: A Mutual Fund or Mutual Fund
Portfolio shall pay any investment advisory fee and certain other expenses,
which may include its ordinary operational and organizational expenses, and
any extraordinary expenses, as described in the current prospectus for that
Mutual Fund or Mutual Fund Portfolio as it may be amended or supplemented
from time to time. These expenses may vary from year to year. The net asset
value of each Mutual Fund or Mutual Fund Portfolio share reflects such
investment advisory fee and other expenses which are deducted from the
assets of such Mutual Fund or Mutual Fund Portfolio.
6.3 Administrative Charge: AUL shall deduct an administrative charge per
Contract Quarter equal to the lesser of $3.00 or 0.5% of the Account Value
on the last day of each Contract Quarter from each Participant Account in
existence on such day for as long as the Participant Account is in effect
during the Accumulation Period. This charge is to be prorated among each
subaccount of the Participant Account which corresponds to each Investment
Option utilized under this contract by that Participant Account. If the
entire balance of a Participant Account is applied or withdrawn before the
last day of the Contract Quarter pursuant to Sections 4.1, 4.7, 4.8, 8.2,
or 8.4, the administrative charge attributable to the period of time which
has elapsed since the first day of the Contract Quarter in which such
application or withdrawal of funds is made shall not be deducted from the
amount applied or withdrawn.
6.5 Other Charges: AUL reserves the right to deduct the appropriate premium tax
charge at the time annuity payments commence pursuant to Sections 4.1 and
4.7 or such other time that premium taxes are incurred by AUL. AUL also
reserves the right to deduct the appropriate charges for federal, state, or
local income taxes incurred by AUL that are attributable to the Variable
Account and its Investment Accounts.
6.6 Reduction or Waiver of Certain Charges: AUL may reduce or waive the amount
of the Withdrawal Charge or the administrative charge discussed in Section
6.3 where the expenses associated with the sale of this contract or the
administrative costs associated with this contract are reduced, or where
this contract is sold to the directors or employees of AUL or any of its
affiliates, or to directors or any employees of the AUL American Series
Fund, Inc.
8.1 Right of Contractholder to Terminate: This contract shall terminate if the
Contractholder gives written notice to AUL that this contract is to be
terminated. In such event, the termination notice shall be effective as of
the close of business on the Valuation Date that AUL receives a proper
written Contractholder notice at its Home Office. This date shall be the
effective date of termination. This contract shall also terminate
automatically as of the date that there are no Participant Accounts
maintained hereunder.
9.2 AUL's Annual Statement: No provision or condition of this contract shall be
deemed to control, determine, or modify any annual statement of AUL made to
any insurance department, contractholder, regulatory body, or other person,
nor shall anything in such annual statement be deemed to control,
determine, or modify the valuation provided for in this contract, nor the
values determined, nor the market, book, or other value of any asset in any
Investment Account or Mutual Fund or Mutual Fund Portfolio, nor any of the
other provisions and conditions of this contract.
(G&W stand-alone)
p12518(NBR).amd
against the average daily net assets of each Investment Account. These
charges shall be reflected in the Net Investment Factor as provided in
Section 5.4(c).
6.2 Mutual Fund or Mutual Fund Portfolio Expenses: A Mutual Fund or Mutual Fund
Portfolio shall pay any investment advisory fee and certain other expenses,
which may include its ordinary operational and organizational expenses, and
any extraordinary expenses, as described in the current prospectus for that
Mutual Fund or Mutual Fund Portfolio as it may be amended or supplemented
from time to time. These expenses may vary from year to year. The net asset
value of each Mutual Fund or Mutual Fund Portfolio share reflects such
investment advisory fee and other expenses which are deducted from the
assets of such Mutual Fund or Mutual Fund Portfolio.
By adding the following first paragraph to Section 6.3:
6.3 AUL hereby waives the administrative charge described hereafter in this
Section 6.3.
6.5 Other Charges: AUL reserves the right to deduct the appropriate premium tax
charge at the time annuity payments commence pursuant to Sections 4.1 and
4.7 or such other time that premium taxes are incurred by AUL. AUL also
reserves the right to deduct the appropriate charges for federal, state, or
local income taxes incurred by AUL that are attributable to the Variable
Account and its Investment Accounts.
6.6 Reduction or Waiver of Certain Charges: AUL may reduce or waive the amount
of the Withdrawal Charge or the administrative charge discussed in Section
6.3 where the expenses associated with the sale of this contract or the
administrative costs associated with this contract are reduced, or where
this contract is sold to the directors or employees of AUL or any of its
affiliates, or to directors or any employees of the AUL American Series
Fund, Inc.
By adding the following first paragraph to Section 7.3:
7.3 Right of AUL to Change Charges:
Because the administrative charge described in Section 6.3 has been waived
by AUL, the maximum administrative charge discussed hereafter in this
Section7.3 shall be $0.00.
8.1 Right of Contractholder to Terminate: This contract shall terminate if the
Contractholder gives written notice to AUL that this contract is to be
terminated. In such event, the termination notice shall be effective as of
the close of business on the Valuation Date that AUL receives a proper
written Contractholder notice at its Home Office. This date shall be the
effective date of termination. This contract shall also terminate
automatically as of the date that there are no Participant Accounts
maintained hereunder.
9.2 AUL's Annual Statement: No provision or condition of this contract shall be
deemed to control, determine, or modify any annual statement of AUL made to
any insurance department, contractholder, regulatory body, or other person,
nor shall anything in such annual statement be deemed to control,
determine, or modify the valuation provided for in this contract, nor the
values determined, nor the market, book, or other value of any asset in any
Investment Account or Mutual Fund or Mutual Fund Portfolio, nor any of the
other provisions and conditions of this contract.
(Corporate companion)
(G&W companion)
p12518(NBR).amd
9.8 Election, Notice, or Direction Requirements: Wherever in this contract
reference is made to the Contractholder making a request or giving notice
or direction, such request, notice, or direction must be in writing, or in
a form otherwise acceptable to AUL, and must be submitted to and received
by AUL at its Home Office before becoming effective.
9.15 Voting:
(a) AUL is the legal owner of the shares of a Mutual Fund or Mutual Fund
Portfolio held by the Investment Accounts of the Variable Account. AUL
shall exercise voting rights attributable to the shares of each Mutual
Fund or Mutual Fund Portfolio held in the Investment Accounts at any
regular and special meetings of the shareholders of a Mutual Fund on
matters requiring shareholder voting under The Investment Company Act
of l940 or other applicable laws. AUL shall exercise these voting
rights based on instructions received from persons having the voting
interest in corresponding Investment Accounts of the Variable Account.
However, if The Investment Company Act of l940 or any regulations
thereunder should be amended, or if the present interpretation thereof
should change, and as a result AUL determines that it is permitted to
vote the shares of a Mutual Fund or Mutual Fund Portfolio in its own
right, it may elect to do so. AUL will vote shares of any Investment
Account, if any, that it owns beneficially in its own discretion,
except that if a Mutual Fund or Mutual Fund Portfolio offers its
shares to any insurance company separate account that funds variable
life insurance contracts or if otherwise required by applicable law,
AUL will vote its own shares in the same proportion as the voting
instructions that are received in a timely manner for contracts and
Participant Accounts participating in the Investment Account.
(b) The person having the voting interest under this contract is the
Contractholder. Unless otherwise required by applicable law, the
number of Mutual Fund or Mutual Fund Portfolio shares as to which
voting instructions may be given to AUL is determined by dividing the
value of all of the Accumulation Units of the corresponding Investment
Account attributable to this contract on a particular date by the net
asset value per share of that Mutual Fund or Mutual Fund Portfolio as
of the same date. Fractional votes will be counted. The number of
votes as to which voting instructions may be given will be determined
as of the date coincident with the date established by the applicable
Mutual Fund or Mutual Fund Portfolio for determining shareholders
eligible to vote at the meeting of that Mutual Fund. If required by
the Securities and Exchange Commission, AUL reserves the right to
determine in a different fashion the voting rights attributable to the
shares of a Mutual Fund or Mutual Fund Portfolio.
p12518(NBR).amd
(c) Voting rights attributable to this contract for which no timely voting
instructions are received will be voted by AUL in the same proportion
as the voting instructions which are received in a timely manner for
all contracts and Participant Accounts participating in that
Investment Account.
(d) Neither the Variable Account nor AUL is under any duty to inquire as
to the instructions received or the authority of Contractholders,
Participants, or others to instruct the voting of Mutual Fund or
Mutual Fund Portfolio shares.
(e) Every person or entity having such voting rights shall receive such
reports or prospectuses concerning the Variable Account or a Mutual
Fund or Mutual Fund Portfolio as may be required by applicable federal
law.
AMERICAN UNITED LIFE INSURANCE COMPANY
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Chairman of the Board,
President, & Chief Executive Officer
Attest
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Secretary
CONTRACTHOLDER
By ___________________________________
Title ________________________________
Date _________________________________
(new business)
p12518(NBR).amd
(c) Voting rights attributable to this contract for which no timely voting
instructions are received will be voted by AUL in the same proportion
as the voting instructions which are received in a timely manner for
all contracts and Participant Accounts participating in that
Investment Account.
(d) Neither the Variable Account nor AUL is under any duty to inquire as
to the instructions received or the authority of Contractholders,
Participants, or others to instruct the voting of Mutual Fund or
Mutual Fund Portfolio shares.
(e) Every person or entity having such voting rights shall receive such
reports or prospectuses concerning the Variable Account or a Mutual
Fund or Mutual Fund Portfolio as may be required by applicable federal
law.
CONTRACTHOLDER
By ____________________________________
Title _________________________________
Date __________________________________
AMERICAN UNITED LIFE INSURANCE COMPANY
By ___________________________________
Title ________________________________
Date _________________________________
(existing business)
p12518(NBR).amd
SCHEDULE A
The following Investment Accounts are made available to the Contractholder by
AUL. Amounts allocated to any Investment Account identified below shall be
invested in the shares of the corresponding Mutual Fund or Mutual Fund Portfolio
listed below.
Investment Account Mutual Fund or Mutual Fund Portfolio
------------------ ------------------------------------
AUL American Bond AUL American Bond
AUL American Equity AUL American Equity
AUL American Managed AUL American Managed
AUL American Money Market AUL American Money Market
AUL American Tactical Asset Allocation Portfolio AUL American Tactical Asset Allocation Portfolio
▇▇▇▇▇ American Growth ▇▇▇▇▇ American Growth
▇▇▇▇▇▇▇ Capital Accumulation ▇▇▇▇▇▇▇ Capital Accumulation
Fidelity VIP Equity-Income Fidelity VIP Equity-Income
Fidelity VIP Growth Fidelity VIP Growth
Fidelity VIP High Income Fidelity VIP High Income
Fidelity VIP Overseas Fidelity VIP Overseas
Fidelity VIP II Asset Manager Fidelity VIP II Asset Manager
Fidelity VIP II Contrafund Fidelity VIP II Contrafund
Fidelity VIP II Index 500 Fidelity VIP II Index 500
Janus Aspen Series Flexible Income Portfolio Janus Aspen Series Flexible Income Portfolio
Janus Aspen Series Worldwide Growth Portfolio Janus Aspen Series Worldwide Growth Portfolio
PBHG Insurance Series Growth II PBHG Insurance Series Growth II
PBHG Insurance Series Technology PBHG Insurance Series Technology
and Communication and Communication
SAFECO Resource Series Trust Equity Portfolio SAFECO Resource Series Trust Equity Portfolio
SAFECO Resource Series Trust Growth Portfolio SAFECO Resource Series Trust Growth Portfolio
▇. ▇▇▇▇ Price Equity-Income Portfolio ▇. ▇▇▇▇ Price Equity-Income Portfolio
p12518(NBR).amd
AMENDMENT
TO THE
AUL AMERICAN SERIES
DCP MULTIPLE-FUND GROUP VARIABLE ANNUITY
CONTRACT NUMBER GA XX,XXX (THE CONTRACT)
ISSUED BY
AMERICAN UNITED LIFE INSURANCE COMPANY (AUL)
TO
ABC COMPANY (THE CONTRACTHOLDER)
The Effective Date of this Amendment is.
AUL and the Contractholder hereby agree, by signing below, that the Contract is
hereby amended as follows:
By deleting the last paragraph on the face page and by substituting the
following last paragraph in lieu thereof:
ACCUMULATION UNITS IN ANY INVESTMENT ACCOUNT FOR WHICH THIS CONTRACT MAKES
PROVISION MAY INCREASE OR DECREASE IN DOLLAR VALUE ACCORDING TO THE INVESTMENT
PERFORMANCE OF THE UNDERLYING ASSETS IN THE CORRESPONDING MUTUAL FUND OR MUTUAL
FUND PORTFOLIO IN WHICH THE INVESTMENT ACCOUNT INVESTS. THE VALUE OF SUCH ASSETS
AND ACCUMULATION UNITS IS NOT GUARANTEED. ARTICLE 5 OF THIS CONTRACT EXPLAINS
THE VALUATION OF SUCH ASSETS AND ACCUMULATION UNITS.
By deleting the corresponding Sections or Subsections of the Contract and by
substituting the following Sections or Subsections in lieu thereof, and by
making any required corresponding changes in the Table of Contents of the
Contract:
1.4 "Contract Anniversary" means the first day of the second Contract Year and
each subsequent Contract Year. Each Contract Anniversary after the First
Contract Anniversary shall be the same day of the same month as the day and
month which is stated on the face page of this contract for the First
Contract Anniversary.
By deleting the first sentence of Section 1.7 and by substituting the following
first sentence in lieu thereof:
1.7 "Contributions" means amounts paid to AUL by the Contractholder pursuant to
the Plan, including amounts transferred to this contract from another AUL
group annuity contract, which are credited to a Participant Account
maintained hereunder.
1.12 "Investment Account" means each subaccount of the Variable Account which is
maintained by AUL and made available to the Contractholder by AUL and
identified in Schedule A of the contract. Schedule A of the contract may be
amended by AUL from time to time as described in Section 3.3. Amounts
allocated to any Investment Account identified in Schedule A of the
contract
12518br.adm
shall be invested in the shares of the corresponding Mutual Fund or Mutual
Fund Portfolio listed in the current prospectus for the Variable Account.
1.15 "Mutual Fund" means the AUL American Series Fund, Inc., a diversified,
open-end management investment company registered under The Investment
Company Act of l940, and any other such open-end management investment
company made available by AUL, as listed in Schedule A.
1.19 "Portfolio" (also known as a "Mutual Fund Portfolio") means a portfolio
established within a particular Mutual Fund as described in that prospectus
for that Mutual Fund, as such prospectus may be amended or supplemented
from time to time.
1.23 "Withdrawal Charge" means a charge taken by AUL equal to a percentage of
the Account Value withdrawn under this contract, other than withdrawals to
provide those benefits discussed in Section 4.7, as provided by the Plan,
where the percentage varies by the Participant Account Year in which the
withdrawal is made. The first Participant Account Year begins on the date
when AUL establishes a Participant Account and credits the initial
Contribution for the Participant, and ends on the day immediately preceding
the next anniversary of such date. Each Participant Account Year thereafter
begins on such an anniversary date and ends on the day immediately
preceding the next succeeding anniversary date. The Withdrawal Charge
percentage is as follows:
During Withdrawal Charge
Participant Account Years Percentage
1 - 5 8%
6 - 10 4%
Thereafter 0%
In no event will the cumulative total of all Withdrawal Charges, including
those previously assessed against any amount withdrawn from a Participant
Account, exceed 9% of total Contributions allocated to that Participant
Account.
3.2 How Contributions are Handled:
(a) Contributions received at the Home Office shall be credited to the
appropriate subaccounts of each of the Participant Accounts as
directed by the Contractholder in written allocation instructions.
(b) Within any one Participant Account, the amount so credited shall be
allocated to an Investment Option in increments elected in a form
acceptable to AUL by the Contractholder or by that person designated
to AUL by the Contractholder. If no Investment Option election is made
with respect to a particular Contribution to any Participant Account,
AUL shall process such credits in accordance with the Investment
Option election applicable to the immediately preceding Contribution.
The Contractholder or such designated person may change an Investment
Option election with respect to future allocations to the applicable
Participant Account by giving new Investment Option elections to AUL
at its Home Office in a form acceptable to AUL.
(c) The initial Contribution for a Participant shall be allocated to the
Participant Account no later than the close of business on the second
business day of AUL after the later of (1) the
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business day that AUL receives the initial Contribution at its Home
Office, or (2) the business day that AUL receives, at its Home Office,
the data required to establish the Participant Account, instructions
regarding the amount of the initial Contribution for the Participant,
and Investment Option elections regarding the initial Contribution.
(d) If the data required to establish a Participant Account and
instructions regarding the amount of a Contribution for the
Participant are not received by AUL at its Home Office within 5
business days after AUL first receives that Contribution, AUL shall
return that Contribution to the Contractholder unless the
Contractholder consents to AUL retaining that Contribution until the
earlier of (i) the date AUL receives such data and instructions and,
therefore, can properly allocate that Contribution to the Participant
Account or (ii) 25 days from the date that Contribution is received by
AUL.
(e) If the data required to establish a Participant Account, including any
annuity enrollment form required by AUL, and instructions regarding
the amount of a Contribution for the Participant are received, but an
Investment Option election for that Participant is not received, by
AUL at its Home Office as of the date AUL receives that Contribution,
AUL shall allocate that Contribution to the Investment Option election
identified in the Participant's annuity enrollment form, which is
generally the AUL American Money Market Investment Account. If AUL
subsequently receives a proper Investment Option election for the
Participant, AUL shall then transfer such amounts credited to the AUL
American Money Market Investment Account or other Investment Option
identified in the Participant's annuity enrollment form, plus gains or
minus losses thereon, to another Investment Option, if such election
so directs.
(f) Contributions for a Participant subsequent to the initial Contribution
shall be allocated to the Participant Account as of the close of
business on the later of (1) the Valuation Period in which AUL
receives that Contribution at its Home Office or (2) the Valuation
Period in which AUL receives, at its Home Office, the data required to
establish the Participant Account, instructions regarding the amount
of that Contribution for the Participant, and Investment Option
elections.
3.3 Addition, Deletion, or Substitution of Investments:
(a) AUL reserves the right, subject to compliance with applicable law, to
make additions to, deletions from, substitution for, or combinations
of, the securities that are held by the Variable Account or any
Investment Account or that the Variable Account or any Investment
Account may purchase. AUL reserves the right to eliminate the shares
of any of the eligible Mutual Funds or Mutual Fund Portfolios and to
substitute shares of, or interests in, another Portfolio of the AUL
American Series Fund, Inc., another open-end, registered investment
company, or another investment vehicle, for shares already purchased
or to be purchased in the future under the contract, if the shares of
any or all eligible Mutual Funds or Mutual Fund Portfolios are no
longer available for investment or if further investment in any or all
eligible Mutual Fund or Mutual Fund Portfolios becomes inappropriate
in view of the purposes of the Variable Account or the contract. Where
required under applicable law, AUL will not substitute any shares
attributable to the Contractholder's interest in the Variable Account
or any Investment Account without notice, Contractholder or
Participant approval, or prior approval of the Securities and Exchange
Commission or a state insurance commissioner, and without following
the filing or other procedures established by applicable state
insurance regulators. Nothing contained herein shall prevent the
Variable Account from purchasing other securities for other series or
classes of contracts, or from effecting a conversion between series or
classes of contracts on the basis of requests made by a majority of
other contractholders or as permitted by federal law.
(b) AUL reserves the right to establish additional Investment Accounts,
each of which would invest in the corresponding Mutual Fund or Mutual
Fund Portfolio listed in the current prospectus for the Variable
Account, or in other securities or investment vehicles. AUL reserves
the right to eliminate or combine existing Investment Accounts if
marketing, tax, or investment conditions so warrant. AUL also reserves
the right to provide other Investment Options under this contract at
any time. Subject to any required regulatory approvals, AUL reserves
the right to transfer assets from any Investment Account to another
separate account of AUL or Investment Account.
(c) In the event of any such substitution or change, AUL may, by
appropriate amendment, make such changes in this contract as may be
necessary or appropriate to reflect such substitution or change. If
deemed by AUL to be in the best interests of persons or entities
having voting rights under this contract, the Variable Account may be
operated as a management investment company under The Investment
Company Act of 1940 or any other form permitted by law, it may be
deregistered in the event such registration is no longer required
under The Investment Company Act of 1940, or it may be combined with
other separate accounts of AUL or an affiliate thereof. AUL may take
such action as is necessary to comply with, or to obtain, exemptions
from the Securities and Exchange Commission with regard to the
Variable Account. Subject to compliance with applicable law, AUL also
may combine one or more Investment Accounts and may establish a
committee, board, or other group to manage one or more aspects of the
operation of the Variable Account.
3.4 Transfers:
(a) Subject to the limitations of Section 3.5, the Contractholder, or that
person designated to AUL by the Contractholder, may direct AUL, in a
form acceptable to AUL, to transfer the amounts credited to an
Investment Option to any other Investment Option during the
Accumulation Period. Any transfer from an Investment Account shall be
effective as of the close of business on the Valuation Date that AUL
receives that transfer direction at its Home Office.
(b) AUL shall make the transfer as requested within 3 days from the date a
proper request is received by AUL at its Home Office, except as AUL
may be permitted to defer such payment of amounts withdrawn from the
Variable Account in accordance with appropriate provisions of the
federal securities laws. AUL reserves the right to defer a transfer of
amounts from the Fixed Interest Account for a period of up to 6 months
after AUL receives the transfer request at its Home Office.
12518br.adm
3.5 Limitations on Transfers:
(a) The minimum transfer from the Participant Account's share of any
Investment Option is the lesser of $500 or the Participant Account's
entire share of that Investment Option as of the close of business on
the Valuation Date that AUL receives that transfer direction at its
Home Office. However, if that transfer reduces the Participant
Account's remaining share of that Investment Option to less than $500,
the entire remaining share shall also be transferred.
(b) Amounts transferred from the Fixed Interest Account on behalf of a
Participant during any Contract Year shall not exceed 20% of the
Participant Account's share of the Fixed Interest Account determined
as of the later of the Contract Date or the Contract Anniversary
immediately preceding the request for transfer. Notwithstanding the
previous sentence, if the Participant Account's share of the Fixed
Interest Account is less than $2,500 determined as of the later of the
Contract Date or the Contract Anniversary immediately preceding the
request for transfer, the amount transferrable from the Fixed Interest
Account for that Contract Year is the lesser of $500 or the
Participant Account's entire share of the Fixed Interest Account as of
the close of business on the Valuation Date that AUL receives that
transfer direction at its Home Office. And if that transfer reduces
the Participant Account's remaining share of the Fixed Interest
Account to less than $500, the entire remaining share shall also be
transferred.
4.1 Election of Annuity Options: At the written request of the Contractholder
pursuant to Section 4.7, AUL shall apply all or a portion of the Account
Value (subject to Section 6.5) of a Participant Account for the purpose of
providing a fixed payment annuity under the Plan. Upon receipt of a request
for an annuity, AUL is hereby authorized by the Contractholder to value and
transfer the Participant Account's share of the Variable Account to the
Fixed Interest Account as of the date provided in Section 4.9(d). Such
transferred amounts shall be held in the Fixed Interest Account until such
time as such amounts are used to provide an annuity under the Plan. The
Contractholder request shall include certification as to the purpose for
the annuity and the election of one of the annuity options listed in
Section 4.2. The amount of any annuity shall be computed from the Table of
Immediate Annuities then included in this contract, except as provided
under Section 4.4.
4.7 "Benefit Responsive" Plan Benefits and Annuities: Subject to the
limitations provided in Section 4.9, at any time prior to termination of
the contract pursuant to the provisions of Article 8, the Contractholder
may direct AUL to withdraw all or a portion of the Account Value (subject
to Section 6.5) of a Participant Account for the purpose of providing:
(a) an annuity in accordance with the Annuity Options shown in Section
4.2, as directed by the Contractholder, for benefits as provided by
the Plan (other than Plan termination benefits); or
(b) a cash lump-sum payment to the Contractholder or to whomever the
Contractholder directs to pay benefits as provided by the Plan (other
than Plan termination benefits) for retirement, death, disability,
termination of employment, unforeseen emergencies, or required minimum
distribution benefits pursuant to Internal Revenue Code Section
401(a)(9) and Regulations issued thereunder.
4.8 Other Plan Benefits Payable in Cash: Subject to the limitations provided in
Section 4.9, at any time prior to termination of the contract pursuant to
the provisions of Article 8, the Contractholder may direct AUL to make a
cash payment from a Participant Account to the Contractholder or to
whomever the Contractholder directs for the purpose of providing Plan
benefits other than those provided in Section 4.7(b). If it is necessary to
withdraw the entire Account Value of a Participant Account to make such
payment, the amount paid shall equal the Withdrawal Value, minus any
Section 6.5 charges. If it is not necessary to withdraw the entire Account
Value to make such payment, AUL shall reduce the Account Value of the
Participant Account by an amount sufficient to make the cash payment
requested and to cover the Withdrawal Charge and any Section 6.5 charges.
Notwithstanding the previous paragraph, in the first Contract Year in which
a Participant Account is established, the Contractholder may withdraw from
that Participant Account up to 10% of the sum of the Account Value of that
Participant Account (determined as of the later of the Contract Date or the
Contract Anniversary immediately preceding the request for the withdrawal)
plus Contributions made during that Contract Year, without application of
the Withdrawal Charge. In the next succeeding Contract Year, the
Contractholder may also withdraw from that ▇▇▇▇▇▇▇▇▇▇▇
(▇▇)
▇▇▇▇▇▇▇.▇▇▇
Date that AUL receives that transfer direction at its Home Office. And if
that transfer reduces the Participant Account's remaining share of the
Fixed Interest Account to less than $500, the entire remaining share shall
also be transferred.
4.1 Election of Annuity Options: At the written request of the Contractholder
pursuant to Section 4.7, AUL shall apply all or a portion of the Account
Value (subject to Section 6.5) of a Participant Account for the purpose of
providing a fixed payment annuity under the Plan. Upon receipt of a request
for an annuity, AUL is hereby authorized by the Contractholder to value and
transfer the Participant Account's share of the Variable Account to the
Fixed Interest Account as of the date provided in Section 4.9(d). Such
transferred amounts shall be held in the Fixed Interest Account until such
time as such amounts are used to provide an annuity under the Plan. The
Contractholder request shall include certification as to the purpose for
the annuity and the election of one of the annuity options listed in
Section 4.2. The amount of any annuity shall be computed from the Table of
Immediate Annuities then included in this contract, except as provided
under Section 4.4.
4.7 "Benefit Responsive" Plan Benefits and Annuities: Subject to the
limitations provided in Section 4.9, at any time prior to termination of
the contract pursuant to the provisions of Article 8, the Contractholder
may direct AUL to withdraw all or a portion of the Account Value (subject
to Section 6.5) of a Participant Account for the purpose of providing:
(a) an annuity in accordance with the Annuity Options shown in Section
4.2, as directed by the Contractholder, for benefits as provided by
the Plan (other than Plan termination benefits); or
(b) a cash lump-sum payment to the Contractholder or to whomever the
Contractholder directs to pay death benefits as provided by the Plan
(other than plan termination benefits); or
(c) providing the Participant has attained (1) age 55 and has 10 years of
service with the employer identified in the Plan or (2) age 62, a cash
lump-sum payment to the Contractholder or to whomever the
Contractholder directs to pay benefits as provided by the Plan (other
than Plan termination benefits) for retirement, disability,
termination of employment, unforeseen emergencies, or required minimum
distribution benefits pursuant to Internal Revenue Code Section
401(a)(9) and Regulations issued thereunder.
4.8 Other Plan Benefits Payable in Cash: Subject to the limitations provided in
Section 4.9, at any time prior to termination of the contract pursuant to
the provisions of Article 8, the Contractholder may direct AUL to make a
cash payment from a Participant Account to the Contractholder or to
whomever the Contractholder directs for the purpose of providing Plan
benefits other than those provided in Section 4.7(b) and (c). If it is
necessary to withdraw the entire Account Value of a Participant Account to
make such payment, the amount paid shall equal the Withdrawal Value, minus
any Section 6.5 charges. If it is not necessary to withdraw the entire
Account Value to make such payment, AUL shall reduce the Account Value of
the Participant Account by an amount sufficient to make the cash payment
requested and to cover the Withdrawal Charge and any Section 6.5 charges.
Notwithstanding the previous paragraph, in the first Contract Year in which
a Participant Account is established, the Contractholder may withdraw from
that Participant Account up to 10% of the sum of the Account Value of that
Participant Account (determined as of the later of the Contract Date or the
Contract Anniversary immediately preceding the request for the withdrawal)
plus Contributions made during that Contract Year, without application of
the Withdrawal Charge. In the next succeeding Contract Year, the
Contractholder may also withdraw from that Participant
(MBR)
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Account up to 10% of the sum of the Account Value of that Participant
Account (determined as of the Contract Anniversary immediately preceding
the request for the withdrawal) plus Contributions made during that
Contract Year, without application of the Withdrawal Charge. In any sub-
sequent Contract Year, the Contractholder may withdraw from that Partici-
pant Account up to 10% of the Account Value of that Participant Account
(determined as of the Contract Anniversary immediately preceding the
request for the withdrawal) without application of the Withdrawal Charge.
4.9 Conditions for Payment of Benefits:
(a) Any benefit request submitted by the Contractholder shall include
certification as to the purpose of the request for payment. The
Contractholder assumes full responsibility for determining whether any
benefit payment is permitted under applicable law and under the terms
of the Plan. AUL may rely solely upon the representations of the
Contractholder made in the benefit request.
(b) Withdrawals from a Participant Account's share of any Investment
Option may not be made in an amount less than the smaller of $500 or
the Participant Account's entire share of the Investment Option as of
the close of business on the Valuation Date that AUL receives that
withdrawal request (or due proof of death, if received later), in a
form acceptable to AUL, at its Home Office. If a withdrawal reduces
the Participant Account's share of an Investment Option to less than
$500, such remaining share shall also be withdrawn.
(c) Withdrawals from a Participant Account's share of the Fixed Interest
Account shall be made on a first-in/first-out basis so that all or a
portion of the amounts credited to the Participant Account's share of
the Fixed Interest Account which have been on deposit for the longest
period of time, as well as the interest credited thereon, shall be
withdrawn first.
(d) A withdrawal request shall be effective, and the Account Value to be
applied pursuant to Sections 4.1, 4.7, or 4.8 shall be determined, as
of the close of business on the Valuation Date that AUL receives a
proper withdrawal request (or due proof of death, if received later),
in a form acceptable to AUL, at its Home Office.
(e) AUL shall pay any cash lump sum to the Contractholder or to whomever
the Contractholder directs within 3 days from the appropriate
Valuation Date as determined in Subsection (d) above, except as AUL
may be permitted to defer such payment of amounts withdrawn from the
Variable Account in accordance with appropriate provisions of the
federal securities laws. AUL reserves the right to defer the payment
of amounts withdrawn from the Fixed Interest Account for a period of
up to 6 months after AUL receives the withdrawal request at its Home
Office.
(f) No withdrawals shall be permitted prior to the termination of this
contract except as provided in Sections 4.7 and 4.8.
5.1 Valuation of Mutual Fund or Mutual Fund Portfolio Assets: All assets of
each Mutual Fund or Mutual Fund Portfolio shall be valued as provided in
the prospectus for the applicable Mutual Fund or Mutual Fund Portfolio as
such prospectus may be amended or supplemented from time to time.
5.2 Accumulation Units: Any amounts allocated to any Investment Account on
behalf of a Participant shall be credited to his Participant Account in the
form of Accumulation Units on the basis of the value of such units in that
Investment Account as of the later of (1) the end of the Valuation Period
on which such amounts are received by AUL at its Home Office or (2) the end
of the Valuation Period on which the data required to establish the
Participant Account and allocate such amounts to the Participant Account
and to Investment Options are received by AUL at its Home Office. However,
if the initial Contribution for a Participant is allocated pursuant to
Section 3.2(c) on the next succeeding Valuation Period, the unit value as
of the end of that Valuation Period shall be used. Such crediting shall be
made separately for amounts allocated to each Investment Account. The
number of Accumulation Units in each Investment Account credited to each
Participant Account as of any Valuation Period shall be determined by
dividing the amounts allocated to that Investment Account for that
Participant Account as of such Valuation Period by the dollar value of one
Accumulation Unit in that Investment Account as of the close of business on
the applicable Valuation Period. The number of Accumulation Units thus
determined shall not be changed by any subsequent change in the dollar
value of the Accumulation Units.
5.3 Value of Accumulation Units: The value of an Accumulation Unit in the AUL
American Equity, Bond, Money Market, and Managed Investment Accounts was
established at $1.00 as of April 12, 1990. The value of an Accumulation
Unit in any other Investment Account available under this contract shall be
established at $1.00 as of the date of the first deposit to such Investment
Account. The value of an Accumulation Unit in each Investment Account as of
any Valuation Period thereafter is equal to the dollar value of one
Accumulation Unit in that Investment Account as of the immediately
preceding Valuation Period multiplied by the Net Investment Factor, as
defined in Section 5.4, for that Investment Account for the current
Valuation Period. The value of an Accumulation Unit for each Investment
Account shall be determined for each Valuation Period before giving effect
to any additions, withdrawals, or transfers. After such determination, the
additions, withdrawals, or transfers which are effective as of that day
shall then be made.
5.4 Determining the Net Investment Factor: The Net Investment Factor for each
Investment Account for any Valuation Period is determined by dividing (a)
by (b), and then subtracting (c) from that result, where:
(a) is equal to:
(1) the net asset value of a Mutual Fund or Mutual Fund Portfolio
share held in the Investment Account determined as of the end of
the current Valuation Period, plus
(2) the per share amount of any dividend or other distribution, if
any, paid by the Mutual Fund or Mutual Fund Portfolio during the
current Valuation Period, plus or minus
(3) any credit or charge for any taxes paid or reserved for by AUL
during the current Valuation Period which are determined by AUL
to be attributable to operation of the Investment Account;
(b) is the net asset value of a Mutual Fund or Mutual Fund Portfolio share
held in the Investment Account determined as of the end of the
immediately preceding Valuation Period; and
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(c) is a daily charge factor determined by AUL to reflect the charges
assessed against the assets of the Investment Account for mortality
and expense risks, as authorized by Section 6.1.
6.1 Mortality Risk and Expense Risk Charges: AUL shall deduct a daily mortality
risk charge and a daily expense risk charge equal to the daily equivalent
of an annual combined charge of 1.25% against the average daily net assets
of each Investment Account. These charges shall be reflected in the Net
Investment Factor as provided in Section 5.4(c).
6.2 Mutual Fund or Mutual Fund Portfolio Expenses: A Mutual Fund or Mutual Fund
Portfolio shall pay any investment advisory fee and certain other expenses,
which may include its ordinary operational and organizational expenses, and
any extraordinary expenses, as described in the current prospectus for that
Mutual Fund or Mutual Fund Portfolio as it may be amended or supplemented
from time to time. These expenses may vary from year to year. The net asset
value of each Mutual Fund or Mutual Fund Portfolio share reflects such
investment advisory fee and other expenses which are deducted from the
assets of such Mutual Fund or Mutual Fund Portfolio.
6.3 Administrative Charge: AUL shall deduct an administrative charge per
Contract Quarter equal to the lesser of $7.50 or 0.5% of the Account Value
on the last day of each Contract Quarter from each Participant Account in
existence on such day for as long as the Participant Account is in effect
during the Accumulation Period. This charge is to be prorated among each
subaccount of the Participant Account which corresponds to each Investment
Option utilized under this contract by that Participant Account. If the
entire balance of a Participant Account is applied or withdrawn before the
last day of the Contract Quarter pursuant to Sections 4.1, 4.7, 4.8, 8.2,
or 8.4, the administrative charge attributable to the period of time which
has elapsed since the first day of the Contract Quarter in which such
application or withdrawal of funds is made shall not be deducted from the
amount applied or withdrawn.
6.5 Other Charges: AUL reserves the right to deduct the appropriate premium tax
charge at the time annuity payments commence pursuant to Sections 4.1 and
4.7 or such other time that premium taxes are incurred by AUL. AUL also
reserves the right to deduct the appropriate charges for federal, state, or
local income taxes incurred by AUL that are attributable to the Variable
Account and its Investment Accounts.
6.6 Reduction or Waiver of Certain Charges: AUL may reduce or waive the amount
of the Withdrawal Charge or the administrative charge discussed in Section
6.3 where the expenses associated with the sale of this contract or the
administrative costs associated with this contract are reduced, or where
this contract is sold to the directors or employees of AUL or any of its
affiliates, or to directors or any employees of the AUL American Series
Fund, Inc.
8.1 Right of Contractholder to Terminate: This contract shall terminate if the
Contractholder gives written notice to AUL that this contract is to be
terminated. In such event, the termination notice shall be effective as of
the close of business on the Valuation Date that AUL receives a proper
written Contractholder notice at its Home Office. This date shall be the
effective date of termination. This contract shall also terminate
automatically as of the date that there are no Participant Accounts
maintained hereunder.
(Corporate stand-alone/prior to 3/1/97)
12518br.adm
(c) is a daily charge factor determined by AUL to reflect the charges
assessed against the assets of the Investment Account for mortality
and expense risks, as authorized by Section 6.1.
6.1 Mortality Risk and Expense Risk Charges: AUL shall deduct a daily mortality
risk charge and a daily expense risk charge equal to the daily equivalent
of an annual combined charge of 1.25% against the average daily net assets
of each Investment Account. These charges shall be reflected in the Net
Investment Factor as provided in Section 5.4(c).
6.2 Mutual Fund or Mutual Fund Portfolio Expenses: A Mutual Fund or Mutual Fund
Portfolio shall pay any investment advisory fee and certain other expenses,
which may include its ordinary operational and organizational expenses, and
any extraordinary expenses, as described in the current prospectus for that
Mutual Fund or Mutual Fund Portfolio as it may be amended or supplemented
from time to time. These expenses may vary from year to year. The net asset
value of each Mutual Fund or Mutual Fund Portfolio share reflects such
investment advisory fee and other expenses which are deducted from the
assets of such Mutual Fund or Mutual Fund Portfolio.
By adding the following first paragraph to Section 6.3:
6.3 Administrative Charge:
AUL hereby waives the administrative charge described hereafter in this
Section 6.3.
6.5 Other Charges: AUL reserves the right to deduct the appropriate premium tax
charge at the time annuity payments commence pursuant to Sections 4.1 and
4.7 or such other time that premium taxes are incurred by AUL. AUL also
reserves the right to deduct the appropriate charges for federal, state, or
local income taxes incurred by AUL that are attributable to the Variable
Account and its Investment Accounts.
6.6 Reduction or Waiver of Certain Charges: AUL may reduce or waive the amount
of the Withdrawal Charge or the administrative charge discussed in Section
6.3 where the expenses associated with the sale of this contract or the
administrative costs associated with this contract are reduced, or where
this contract is sold to the directors or employees of AUL or any of its
affiliates, or to directors or any employees of the AUL American Series
Fund, Inc.
By adding the following first paragraph to Section 7.3:
7.3 Right of AUL to Change Charges:
Because the administrative charge described in Section 6.3 has been waived
by AUL, the maximum administrative charge discussed hereafter in this
Section 7.3 shall be $0.00.
8.1 Right of Contractholder to Terminate: This contract shall terminate if the
Contractholder gives written notice to AUL that this contract is to be
terminated. In such event, the termination notice shall be effective as of
the close of business on the Valuation Date that AUL receives a proper
written Contractholder notice at its Home Office. This date shall be the
effective date of termination. This contract shall also terminate
automatically as of the date that there are no Participant Accounts
maintained hereunder.
(Corporate stand-alone/effective 3/1/97 or later)
12518br.adm
(c) is a daily charge factor determined by AUL to reflect the charges
assessed against the assets of the Investment Account for mortality
and expense risks, as authorized by Section 6.1.
6.1 Mortality Risk and Expense Risk Charges: AUL shall deduct a daily mortality
risk charge and a daily expense risk charge equal to the daily equivalent
of an annual combined charge of 1.25% against the average daily net assets
of each Investment Account. These charges shall be reflected in the Net
Investment Factor as provided in Section 5.4(c).
6.2 Mutual Fund or Mutual Fund Portfolio Expenses: A Mutual Fund or Mutual Fund
Portfolio shall pay any investment advisory fee and certain other expenses,
which may include its ordinary operational and organizational expenses, and
any extraordinary expenses, as described in the current prospectus for that
Mutual Fund or Mutual Fund Portfolio as it may be amended or supplemented
from time to time. These expenses may vary from year to year. The net asset
value of each Mutual Fund or Mutual Fund Portfolio share reflects such
investment advisory fee and other expenses which are deducted from the
assets of such Mutual Fund or Mutual Fund Portfolio.
6.3 Administrative Charge: AUL shall deduct an administrative charge per
Contract Quarter equal to the lesser of $3.00 or 0.5% of the Account Value
on the last day of each Contract Quarter from each Participant Account in
existence on such day for as long as the Participant Account is in effect
during the Accumulation Period. This charge is to be prorated among each
subaccount of the Participant Account which corresponds to each Investment
Option utilized under this contract by that Participant Account. If the
entire balance of a Participant Account is applied or withdrawn before the
last day of the Contract Quarter pursuant to Sections 4.1, 4.7, 4.8, 8.2,
or 8.4, the administrative charge attributable to the period of time which
has elapsed since the first day of the Contract Quarter in which such
application or withdrawal of funds is made shall not be deducted from the
amount applied or withdrawn.
6.5 Other Charges: AUL reserves the right to deduct the appropriate premium tax
charge at the time annuity payments commence pursuant to Sections 4.1 and
4.7 or such other time that premium taxes are incurred by AUL. AUL also
reserves the right to deduct the appropriate charges for federal, state, or
local income taxes incurred by AUL that are attributable to the Variable
Account and its Investment Accounts.
6.6 Reduction or Waiver of Certain Charges: AUL may reduce or waive the amount
of the Withdrawal Charge or the administrative charge discussed in Section
6.3 where the expenses associated with the sale of this contract or the
administrative costs associated with this contract are reduced, or where
this contract is sold to the directors or employees of AUL or any of its
affiliates, or to directors or any employees of the AUL American Series
Fund, Inc.
8.1 Right of Contractholder to Terminate: This contract shall terminate if the
Contractholder gives written notice to AUL that this contract is to be
terminated. In such event, the termination notice shall be effective as of
the close of business on the Valuation Date that AUL receives a proper
written Contractholder notice at its Home Office. This date shall be the
effective date of termination. This contract shall also terminate
automatically as of the date that there are no Participant Accounts
maintained hereunder.
(G&W stand-alone/prior to 3/1/97)
12518br.adm
(c) is a daily charge factor determined by AUL to reflect the charges
assessed against the assets of the Investment Account for mortality
and expense risks, as authorized by Section 6.1.
6.1 Mortality Risk and Expense Risk Charges: AUL shall deduct a daily mortality
risk charge and a daily expense risk charge equal to the daily equivalent
of an annual combined charge of 1.25% against the average daily net assets
of each Investment Account. These charges shall be reflected in the Net
Investment Factor as provided in Section 5.4(c).
6.2 Mutual Fund or Mutual Fund Portfolio Expenses: A Mutual Fund or Mutual Fund
Portfolio shall pay any investment advisory fee and certain other expenses,
which may include its ordinary operational and organizational expenses, and
any extraordinary expenses, as described in the current prospectus for that
Mutual Fund or Mutual Fund Portfolio as it may be amended or supplemented
from time to time. These expenses may vary from year to year. The net asset
value of each Mutual Fund or Mutual Fund Portfolio share reflects such
investment advisory fee and other expenses which are deducted from the
assets of such Mutual Fund or Mutual Fund Portfolio.
By adding the following first paragraph to Section 6.3:
6.3 Administrative Charge:
AUL hereby waives the administrative charge described hereafter in this
Section 6.3.
6.5 Other Charges: AUL reserves the right to deduct the appropriate premium tax
charge at the time annuity payments commence pursuant to Sections 4.1 and
4.7 or such other time that premium taxes are incurred by AUL. AUL also
reserves the right to deduct the appropriate charges for federal, state, or
local income taxes incurred by AUL that are attributable to the Variable
Account and its Investment Accounts.
6.6 Reduction or Waiver of Certain Charges: AUL may reduce or waive the amount
of the Withdrawal Charge or the administrative charge discussed in Section
6.3 where the expenses associated with the sale of this contract or the
administrative costs associated with this contract are reduced, or where
this contract is sold to the directors or employees of AUL or any of its
affiliates, or to directors or any employees of the AUL American Series
Fund, Inc.
By adding the following first paragraph to Section 7.3:
7.3 Right of AUL to Change Charges:
Because the administrative charge described in Section 6.3 has been waived
by AUL, the maximum administrative charge discussed hereafter in this
Section 7.3 shall be $0.00.
8.1 Right of Contractholder to Terminate: This contract shall terminate if the
Contractholder gives written notice to AUL that this contract is to be
terminated. In such event, the termination notice shall be effective as of
the close of business on the Valuation Date that AUL receives a proper
written Contractholder notice at its Home Office. This date shall be the
effective date of termination. This contract shall also terminate
automatically as of the date that there are no Participant Accounts
maintained hereunder.
(G&W stand-alone/effective 3/1/97 or later)
12518br.adm
(c) is a daily charge factor determined by AUL to reflect the charges
assessed against the assets of the Investment Account for mortality
and expense risks, as authorized by Section 6.1.
6.1 Mortality Risk and Expense Risk Charges: AUL shall deduct a daily mortality
risk charge and a daily expense risk charge equal to the daily equivalent
of an annual combined charge of 1.25% against the average daily net assets
of each Investment Account. These charges shall be reflected in the Net
Investment Factor as provided in Section 5.4(c).
6.2 Mutual Fund or Mutual Fund Portfolio Expenses: A Mutual Fund or Mutual Fund
Portfolio shall pay any investment advisory fee and certain other expenses,
which may include its ordinary operational and organizational expenses, and
any extraordinary expenses, as described in the current prospectus for that
Mutual Fund or Mutual Fund Portfolio as it may be amended or supplemented
from time to time. These expenses may vary from year to year. The net asset
value of each Mutual Fund or Mutual Fund Portfolio share reflects such
investment advisory fee and other expenses which are deducted from the
assets of such Mutual Fund or Mutual Fund Portfolio.
By adding the following first paragraph to Section 6.3:
6.3 Administrative Charge:
AUL hereby waives the administrative charge described hereafter in this
Section 6.3.
6.5 Other Charges: AUL reserves the right to deduct the appropriate premium tax
charge at the time annuity payments commence pursuant to Sections 4.1 and
4.7 or such other time that premium taxes are incurred by AUL. AUL also
reserves the right to deduct the appropriate charges for federal, state, or
local income taxes incurred by AUL that are attributable to the Variable
Account and its Investment Accounts.
6.6 Reduction or Waiver of Certain Charges: AUL may reduce or waive the amount
of the Withdrawal Charge or the administrative charge discussed in Section
6.3 where the expenses associated with the sale of this contract or the
administrative costs associated with this contract are reduced, or where
this contract is sold to the directors or employees of AUL or any of its
affiliates, or to directors or any employees of the AUL American Series
Fund, Inc.
By adding the following first paragraph to Section 7.3:
7.3 Right of AUL to Change Charges:
Because the administrative charge described in Section 6.3 has been waived
by AUL, the maximum administrative charge discussed hereafter in this
Section 7.3 shall be $0.00.
8.1 Right of Contractholder to Terminate: This contract shall terminate if the
Contractholder gives written notice to AUL that this contract is to be
terminated. In such event, the termination notice shall be effective as of
the close of business on the Valuation Date that AUL receives a proper
written Contractholder notice at its Home Office. This date shall be the
effective date of termination. This contract shall also terminate
automatically as of the date that there are no Participant Accounts
maintained hereunder.
(Stand-Alone/Select-like basis)
(G & W companion)
(Corporate companion)
12518br.adm
9.2 AUL's Annual Statement: No provision or condition of this contract shall be
deemed to control, determine, or modify any annual statement of AUL made to
any insurance department, contractholder, regulatory body, or other person,
nor shall anything in such annual statement be deemed to control,
determine, or modify the valuation provided for in this contract, nor the
values determined, nor the market, book, or other value of any asset in any
Investment Account or Mutual Fund or Mutual Fund Portfolio, nor any of the
other provisions and conditions of this contract.
9.8 Election, Notice, or Direction Requirements: Wherever in this contract
reference is made to the Contractholder making a request or giving notice
or direction, such request, notice, or direction must be in writing, or in
a form otherwise acceptable to AUL, and must be submitted to and received
by AUL at its Home Office before becoming effective.
9.15 Voting:
(a) AUL is the legal owner of the shares of a Mutual Fund or Mutual Fund
Portfolio held by the Investment Accounts of the Variable Account. In
accordance with its view of present law, AUL shall exercise voting
rights attributable to the shares of each Mutual Fund or Mutual Fund
Portfolio held in the Investment Accounts at any regular and special
meetings of the shareholders of a Mutual Fund on matters requiring
shareholder voting under The Investment Company Act of l940 or other
applicable laws. AUL shall exercise these voting rights based on
instructions received from persons having the voting interest in
corresponding Investment Accounts of the Variable Account. However, if
The Investment Company Act of l940 or any regulations thereunder
should be amended, or if the present interpretation thereof should
change, and as a result AUL determines that it is permitted to vote
the shares of a Mutual Fund or Mutual Fund Portfolio in its own right,
it may elect to do so. AUL will vote shares of any Investment Account,
if any, that it owns beneficially in its own discretion, except that
if a Mutual Fund or Mutual Fund Portfolio offers its shares to any
insurance company separate account that funds variable life insurance
contracts or if otherwise required by applicable law, AUL will vote
its own shares in the same proportion as the voting instructions that
are received in a timely manner for contracts and Participant Accounts
participating in the Investment Account.
(b) The person having the voting interest under this contract is the
Contractholder. Unless otherwise required by applicable law, the
number of Mutual Fund or Mutual Fund Portfolio shares as to which
voting instructions may be given to AUL is determined by dividing the
value of all of the Accumulation Units of the corresponding Investment
Account attributable to this contract on a particular date by the net
asset value per share of that Mutual Fund or Mutual Fund Portfolio as
of the same date. Fractional votes will be counted. The number of
votes as to which voting instructions may be given will be determined
as of the date coincident with the date established by the applicable
Mutual Fund or Mutual Fund Portfolio for determining shareholders
eligible to vote at the meeting of that Mutual Fund. If required by
the Securities and Exchange Commission or under any contract with any
of the Mutual Funds made available by AUL, AUL reserves the right to
determine in a different fashion the voting rights attributable to the
shares of a Mutual Fund or Mutual Fund Portfolio.
12518br.adm
(c) Voting rights attributable to this contract for which no timely voting
instructions are received will be voted by AUL in the same proportion
as the voting instructions which are received in a timely manner for
all contracts and Participant Accounts participating in that
Investment Account.
(d) Neither the Variable Account nor AUL is under any duty to inquire as
to the instructions received or the authority of Contractholders,
Participants, or others to instruct the voting of Mutual Fund or
Mutual Fund Portfolio shares.
(e) Every person or entity having such voting rights shall receive such
reports or prospectuses concerning the Variable Account or a Mutual
Fund or Mutual Fund Portfolio as may be required by applicable federal
law.
AMERICAN UNITED LIFE INSURANCE COMPANY
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Chairman of the Board,
President, & Chief Executive Officer
Attest
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Secretary
CONTRACTHOLDER
By____________________________________
Title ________________________________
Date__________________________________
(new business)
12518br.adm
(c) Voting rights attributable to this contract for which no timely voting
instructions are received will be voted by AUL in the same proportion
as the voting instructions which are received in a timely manner for
all contracts and Participant Accounts participating in that
Investment Account.
(d) Neither the Variable Account nor AUL is under any duty to inquire as
to the instructions received or the authority of Contractholders,
Participants, or others to instruct the voting of Mutual Fund or
Mutual Fund Portfolio shares.
(e) Every person or entity having such voting rights shall receive such
reports or prospectuses concerning the Variable Account or a Mutual
Fund or Mutual Fund Portfolio as may be required by applicable federal
law.
CONTRACTHOLDER AUL
By __________________________________ By ________________________________
Title _______________________________ Title ______________________________
Date ________________________________ Date ______________________________
(existing business)
▇▇▇▇▇▇▇.▇▇▇
▇▇▇▇▇▇▇▇ A
The following Investment Accounts are made available to the Contractholder by
AUL. Amounts allocated to any Investment Account identified below shall be
invested in the shares of the corresponding Mutual Fund or Mutual Fund Portfolio
listed below.
Investment Account Mutual Fund or Mutual Fund Portfolio
------------------ ------------------------------------
AUL American Bond AUL American Bond
AUL American Equity AUL American Equity
AUL American Managed AUL American Managed
AUL American Money Market AUL American Money Market
AUL American Tactical Asset Allocation Portfolio AUL American Tactical Asset Allocation Portfolio
▇▇▇▇▇ American Growth ▇▇▇▇▇ American Growth
▇▇▇▇▇▇▇ Social Mid-Cap Growth ▇▇▇▇▇▇▇ Social Mid-Cap Growth
Fidelity VIP Equity-Income Fidelity VIP Equity-Income
Fidelity VIP Growth Fidelity VIP Growth
Fidelity VIP High Income Fidelity VIP High Income
Fidelity VIP Overseas Fidelity VIP Overseas
Fidelity VIP II Asset Manager Fidelity VIP II Asset Manager
Fidelity VIP II Contrafund Fidelity VIP II Contrafund
Fidelity VIP II Index 500 Fidelity VIP II Index 500
Janus Aspen Series Flexible Income Portfolio Janus Aspen Series Flexible Income Portfolio
Janus Aspen Series Worldwide Growth Portfolio Janus Aspen Series Worldwide Growth Portfolio
PBHG Insurance Series Growth II PBHG Insurance Series Growth II
PBHG Insurance Series Technology PBHG Insurance Series Technology
and Communication and Communication
SAFECO Resource Series Trust Equity Portfolio SAFECO Resource Series Trust Equity Portfolio
SAFECO Resource Series Trust Growth Portfolio SAFECO Resource Series Trust Growth Portfolio
▇. ▇▇▇▇ Price Equity-Income Portfolio ▇. ▇▇▇▇ Price Equity-Income Portfolio
▇▇▇▇▇▇▇.▇▇▇
▇▇▇▇▇▇▇▇▇
TO THE
AUL AMERICAN SERIES
DCP MULTIPLE-FUND GROUP VARIABLE ANNUITY
CONTRACT NUMBER GA XX,XXX (THE CONTRACT)
ISSUED BY
AMERICAN UNITED LIFE INSURANCE COMPANY (AUL)
TO
ABC HOSPITAL
(THE CONTRACTHOLDER)
The Effective Date of this Amendment is the date that it is signed by AUL.
AUL and the Contractholder hereby agree, by signing below, that the Contract is
hereby amended by deleting Schedule A and by substituting the following Schedule
A in lieu thereof:
SCHEDULE A
The following Investment Accounts are made available to the Contractholder by
AUL. Amounts allocated to any Investment Account identified below shall be
invested in the shares of the corresponding Mutual Fund or Mutual Fund Portfolio
listed below.
Investment Account Mutual Fund or Mutual Fund Portfolio
------------------ ------------------------------------
AUL American Bond AUL American Bond
AUL American Equity AUL American Equity
AUL American Managed AUL American Managed
AUL American Money Market AUL American Money Market
AUL American Tactical Asset Allocation Portfolio AUL American Tactical Asset Allocation Portfolio
▇▇▇▇▇ American Growth ▇▇▇▇▇ American Growth
▇▇▇▇▇▇▇ Capital Accumulation ▇▇▇▇▇▇▇ Capital Accumulation
Fidelity VIP Equity-Income Fidelity VIP Equity-Income
Fidelity VIP Growth Fidelity VIP Growth
Fidelity VIP High Income Fidelity VIP High Income
Fidelity VIP Overseas Fidelity VIP Overseas
Fidelity VIP II Asset Manager Fidelity VIP II Asset Manager
Fidelity VIP II Contrafund Fidelity VIP II Contrafund
Fidelity VIP II Index 500 Fidelity VIP II Index 500
Janus Aspen Series Flexible Income Portfolio Janus Aspen Series Flexible Income Portfolio
Janus Aspen Series Worldwide Growth Portfolio Janus Aspen Series Worldwide Growth Portfolio
PBHG Insurance Series Growth II PBHG Insurance Series Growth II
PBHG Insurance Series Technology PBHG Insurance Series Technology
and Communication and Communication
SAFECO Resource Series Trust Equity Portfolio SAFECO Resource Series Trust Equity Portfolio
SAFECO Resource Series Trust Growth Portfolio SAFECO Resource Series Trust Growth Portfolio
▇. ▇▇▇▇ Price Equity-Income Portfolio ▇. ▇▇▇▇ Price Equity-Income Portfolio
CONTRACTHOLDER AUL
By ___________________________________ By_________________________________
Title ________________________________ Title______________________________
Date _________________________________ Date_______________________________
P-12518.A
AMENDMENT
TO THE
AUL AMERICAN SERIES
DCP MULTIPLE-FUND GROUP VARIABLE ANNUITY
CONTRACT NUMBER GA XX,XXX (THE CONTRACT)
ISSUED BY
AMERICAN UNITED LIFE INSURANCE COMPANY (AUL)
TO
ABC COMPANY (THE CONTRACTHOLDER)
The Effective Date of this Amendment is.
AUL and the Contractholder hereby agree, by signing below, that the Contract is
hereby amended as follows:
By deleting the last paragraph on the face page and by substituting the
following last paragraph in lieu thereof:
ACCUMULATION UNITS IN ANY INVESTMENT ACCOUNT FOR WHICH THIS CONTRACT MAKES
PROVISION MAY INCREASE OR DECREASE IN DOLLAR VALUE ACCORDING TO THE INVESTMENT
PERFORMANCE OF THE UNDERLYING ASSETS IN THE CORRESPONDING MUTUAL FUND OR MUTUAL
FUND PORTFOLIO IN WHICH THE INVESTMENT ACCOUNT INVESTS. THE VALUE OF SUCH ASSETS
AND ACCUMULATION UNITS IS NOT GUARANTEED. ARTICLE 5 OF THIS CONTRACT EXPLAINS
THE VALUATION OF SUCH ASSETS AND ACCUMULATION UNITS.
By deleting the corresponding Sections or Subsections of the Contract and by
substituting the following Sections or Subsections in lieu thereof, and by
making any required corresponding changes in the Table of Contents of the
Contract:
1.4 "Contract Anniversary" means the first day of the second Contract Year and
each subsequent Contract Year. Each Contract Anniversary after the First
Contract Anniversary shall be the same day of the same month as the day and
month which is stated on the face page of this contract for the First
Contract Anniversary.
By deleting the first sentence of Section 1.7 and by substituting the following
first sentence in lieu thereof:
1.7 "Contributions" means amounts paid to AUL by the Contractholder pursuant to
the Plan, including amounts transferred to this contract from another AUL
group annuity contract, which are credited to a Participant Account
maintained hereunder.
1.12 "Investment Account" means each subaccount of the Variable Account which is
maintained by AUL and made available to the Contractholder by AUL and
identified in Schedule A of the contract. Schedule A of the contract may be
amended by AUL from time to time as described in Section 3.3. Amounts
allocated to any Investment Account identified in Schedule A of the
contract shall be invested in the shares of the corresponding Mutual Fund
or Mutual Fund Portfolio listed in the current prospectus for the Variable
Account.
p-12518(NBR).II
1.15 "Mutual Fund" means the AUL American Series Fund, Inc., a diversified,
open-end management investment company registered under The Investment
Company Act of l940, and any other such open-end management investment
company made available by AUL, as listed in Schedule A.
1.19 "Portfolio" (also known as a "Mutual Fund Portfolio") means a portfolio
established within a particular Mutual Fund as described in that prospectus
for that Mutual Fund, as such prospectus may be amended or supplemented
from time to time.
1.23 "Withdrawal Charge" means a charge taken by AUL equal to a percentage of
the Account Value withdrawn under this contract, other than withdrawals to
provide those benefits discussed in Section 4.1 or 4.7, as provided by the
Plan, where the percentage varies by the Participant Account Year in which
the withdrawal is made. The first Participant Account Year begins on the
date when AUL establishes a Participant Account and credits the initial
Contribution for the Participant, and ends on the day immediately preceding
the next anniversary of such date. Each Participant Account Year thereafter
begins on such an anniversary date and ends on the day immediately
preceding the next succeeding anniversary date. The Withdrawal Charge
percentage is as follows:
During Withdrawal Charge
Participant Account Years Percentage
1 - 5 8%
6 - 10 4%
Thereafter 0%
However, for any Participant who also participates in AUL Series III group
annuity contract GA XX,XXX, the initial Withdrawal Charge percentage under
this contract shall be equal to the Withdrawal Charge percentage applicable
to the Participant under the AUL Series I group annuity contract from which
funds have been transferred to such Series III contract, determined by AUL
immediately prior to the date of such transfer, rounded down to the next
whole Withdrawal Charge percentage if the Withdrawal Charge percentage
under such Series I contract is a fractional Withdrawal Charge percentage.
However, the Withdrawal Charge percentage under this paragraph shall never
be greater than 8%. The Withdrawal Charge percentage shall be decreased by
1% for each subsequent Participant Account Year until the Withdrawal Charge
percentage equals 4%. (However, if the applicable Series I contract
Withdrawal Charge percentage is less than 4%, it shall be rounded up to 4%
in this contract.) This 4% Withdrawal Charge percentage shall be in effect
during the next 6 consecutive Participant Account Years. Thereafter, the
Withdrawal Charge percentage shall be reduced to 0%.
In no event will the cumulative total of all Withdrawal Charges, including
those previously assessed against any amount withdrawn from a Participant
Account, exceed 9% of total Contributions allocated to that Participant
Account.
3.2 How Contributions are Handled:
(a) Contributions received at the Home Office shall be credited to the
appropriate subaccounts of each of the Participant Accounts as
directed by the Contractholder in written allocation instructions.
p-12518(NBR).II
(b) (1) The initial Contribution for a Participant shall be credited
and allocated to the Participant Account no later than the close
of business on the second business day of AUL after the later of
(1) the business day that AUL receives the initial Contribution
at its Home Office, or (2) the business day that AUL receives, at
its Home Office, the data required to establish the Participant
Account, instructions regarding the amount of the initial
Contribution for the Participant, and Investment Option election
instructions regarding the initial Contribution.
(2) If the data required to establish a Participant Account and
instructions regarding the amount of a Contribution for the
Participant are not received by AUL at its Home Office within 5
business days after AUL first receives that Contribution, AUL
shall return that Contribution to the Contractholder unless the
Contractholder consents to AUL retaining that Contribution until
the earlier of (i) the date AUL receives such data and
instructions and, therefore, can properly allocate that
Contribution to the Participant Account or (ii) 25 days from the
date that Contribution is received by AUL.
(3) If the data required to establish a Participant Account,
including any annuity enrollment form required by AUL, and
instructions regarding the amount of a Contribution for the
Participant are received, but an Investment Option election for
that Participant is not received, by AUL at its Home Office as of
the date AUL receives that Contribution, AUL shall allocate that
Contribution to the Investment Option election identified in the
Participant's annuity enrollment form, which is generally the AUL
American Money Market Investment Account. If AUL subsequently
receives the data required to establish the Participant Account,
instructions regarding the amount of the Contribution for the
Participant, and an Investment Option election, AUL shall then
transfer such amounts credited to the AUL American Money Market
Investment Account or other Investment Option identified in the
Participant's annuity enrollment form, plus gains or minus losses
thereon, to another Investment Option, if such election so
directs.
(c) Contributions for a Participant subsequent to the initial Contribution
shall be credited and allocated to the Participant Account as of the
close of business on the later of (1) the Valuation Period in which
AUL receives that Contribution at its Home Office or (2) the Valuation
Period in which AUL receives, at its Home Office, the data required to
establish the Participant Account, instructions regarding the amount
of that Contribution for the Participant, and Investment Option
election instructions.
(d) Within any one Participant Account, the amount so credited shall be
allocated to an Investment Option in increments elected in a form
acceptable to AUL by the Contractholder or by that person designated
to AUL by the Contractholder. If no investment allocation instruction
is made with respect to any Participant Account, AUL shall process
such credits in accordance with the investment allocation instruction
applicable to the immediately preceding Contribution. The
Contractholder or such designated person may change an investment
allocation instruction with respect to future allocations to the
applicable Participant Account by giving new investment allocation
instructions to AUL at its Home Office in a form acceptable to AUL.
3.3 Addition, Deletion, or Substitution of Investments:
(a) AUL reserves the right, subject to compliance with applicable law, to
make additions to, deletions from, substitution for, or combinations
of, the securities that are held by the Variable Account or any
Investment Account or that the Variable Account or any
p-12518(NBR).II
Investment Account may purchase. AUL reserves the right to eliminate
the shares of any of the eligible Mutual Funds or Mutual Fund
Portfolios and to substitute shares of, or interests in, another
Portfolio of the AUL American Series Fund, Inc., another open-end,
registered investment company, or another investment vehicle, for
shares already purchased or to be purchased in the future under the
contract, if the shares of any or all eligible Mutual Funds or Mutual
Fund Portfolios are no longer available for investment or if further
investment in any or all eligible Mutual Fund or Mutual Fund
Portfolios becomes inappropriate in view of the purposes of the
Variable Account or the contract. Where required under applicable law,
AUL will not substitute any shares attributable to the Contract-
holder's interest in the Variable Account or any Investment Account
without notice, Contractholder or Participant approval, or prior
approval of the Securities and Exchange Commission or a state
insurance commissioner, and without following the filing or other
procedures established by applicable state insurance regulators.
Nothing contained herein shall prevent the Variable Account from
purchasing other securities for other series or classes of contracts,
or from effecting a conversion between series or classes of contracts
on the basis of requests made by a majority of other contractholders
or as permitted by federal law.
(b) AUL reserves the right to establish additional Investment Accounts,
each of which would invest in the corresponding Mutual Fund or Mutual
Fund Portfolio listed in the current prospectus for the Variable
Account, or in other securities or investment vehicles. AUL reserves
the right to eliminate or combine existing Investment Accounts if
marketing, tax, or investment conditions so warrant. AUL also reserves
the right to provide other Investment Options under this contract at
any time. Subject to any required regulatory approvals, AUL reserves
the right to transfer assets from any Investment Account to another
separate account of AUL or Investment Account.
(c) In the event of any such substitution or change, AUL may, by
appropriate amendment, make such changes in this contract as may be
necessary or appropriate to reflect such substitution or change. If
deemed by AUL to be in the best interests of persons or entities
having voting rights under this contract, the Variable Account may be
operated as a management investment company under The Investment
Company Act of 1940 or any other form permitted by law, it may be
deregistered in the event such registration is no longer required
under The Investment Company Act of 1940, or it may be combined with
other separate accounts of AUL or an affiliate thereof. AUL may take
such action as is necessary to comply with, or to obtain, exemptions
from the Securities and Exchange Commission with regard to the
Variable Account. Subject to compliance with applicable law, AUL also
may combine one or more Investment Accounts and may establish a
committee, board, or other group to manage one or more aspects of the
operation of the Variable Account.
3.4 Transfers:
(a) Subject to the limitations of Section 3.5, the Contractholder, or that
person designated to AUL by the Contractholder, may direct AUL, in a
form acceptable to AUL, to transfer the amounts credited to an
Investment Option to any other Investment Option during the
Accumulation Period. Any transfer from an Investment Account shall be
effective as of the close of business on the Valuation Date that AUL
receives such transfer direction.
p-12518(NBR).II
3.5 Limitations on Transfers:
(a) The minimum transfer from the Participant Account's share of any
Investment Option is the lesser of $500 or the Participant Account's
entire share of that Investment Option. However, if that transfer
reduces the Participant Account's remaining share of that Investment
Option to less than $500, the entire remaining share shall also be
transferred.
(b) Amounts transferred from the Fixed Interest Account on behalf of a
Participant during any Contract Year shall not exceed 20% of the
Participant Account's share of the Fixed Interest Account determined
as of the later of the Contract Date or the Contract Anniversary
immediately preceding the request for transfer. Notwithstanding the
previous sentence, if the Participant Account's share of the Fixed
Interest Account is less than $2,500 determined as of the later of the
Contract Date or the Contract Anniversary immediately preceding the
request for transfer, the amount transferrable from the Fixed Interest
Account for that Contract Year is the lesser of $500 or the
Participant Account's entire share of the Fixed Interest Account. And
if that transfer reduces the Participant Account's remaining share of
the Fixed Interest Account to less than $500, the entire remaining
share shall also be transferred.
4.1 Election of Annuity Options: At the written request of the Contractholder,
at any time prior to termination of the contract pursuant to the provisions
of Article 8, AUL shall apply all or a portion of the Account Value
(subject to Section 6.5) of a Participant Account to provide a fixed
payment annuity under the Plan. Upon receipt of a request for an annuity,
AUL is hereby authorized by the Contractholder to value and transfer the
Participant Account's share of the Variable Account to the Fixed Interest
Account as of the date provided in Section 4.8(e). Such transferred amounts
shall be held in the Fixed Interest Account until such time as such amounts
are used to provide an annuity under the Plan. The Contractholder request
shall include certification as to the purpose for the annuity and the
election of one of the annuity options listed in Section 4.2. The amount of
any annuity shall be computed from the Table of Immediate Annuities then
included in this contract, except as provided under Section 4.4.
4.7 Death Benefits: At any time prior to termination of the contract pursuant
to the provisions of Article 8, the Contractholder may direct AUL to pay
death benefits as provided by the Plan (other than Plan termination
benefits), subject to the provisions of Subsections 4.8(b) through (g).
Upon receipt at AUL's Home Office of such written instructions from the
Contractholder and of due proof of the Participant's (and, if applicable,
the beneficiary's) death during the Accumulation Period, AUL shall, as
directed by the Contractholder, withdraw all or a portion of the Account
Value (subject to Section 6.5) of a Participant Account to provide an
annuity pursuant to Section 4.1 or to make a cash lump- sum payment to the
Contractholder or to whomever the Contractholder directs.
4.8 Withdrawal Benefits:
(a) Subject to the following provisions of this Section, at any time prior
to termination of the contract pursuant to the provisions of Article
8, the Contractholder may direct AUL to make a cash payment from a
Participant Account to the Contractholder or to whomever the
Contractholder directs for the purpose of providing Plan benefits
permitted under applicable law (other than Plan termination benefits
or death benefits provided in Section 4.7). Such Plan benefits may
include benefits for retirement, disability, termination of
employment, unforeseen emergencies, or required minimum distribution
benefits pursuant to Internal Revenue Code Section 401(a)(9) and
Regulations issued thereunder. If it is necessary to withdraw the
entire Account Value of a Participant Account to make such payment,
the amount paid shall equal the Withdrawal Value, minus any Section
6.5 charges. If it is not necessary to withdraw the entire Account
Value to make such payment, AUL shall reduce the Account Value of the
Participant Account by an amount sufficient to make the cash payment
requested and to cover the Withdrawal Charge and any Section 6.5
charges.
Notwithstanding the previous paragraph, in the first Contract Year in
which a Participant Account is established, the Contractholder may
withdraw from that Participant Account up to 10% of the sum of the
Account Value of that Participant Account (determined as of the later
of the Contract Date or the Contract Anniversary immediately preceding
the request for the withdrawal) plus Contributions made during that
Contract Year, without application of the Withdrawal Charge. In the
next succeeding Contract Year, the Contractholder may also withdraw
from that Participant Account up to 10% of the sum of the Account
Value of that Participant Account (determined as of the Contract
Anniversary immediately preceding the request for the withdrawal) plus
Contributions made during that Contract Year, without application of
the Withdrawal Charge. In any subsequent Contract Year, the
Contractholder may withdraw from that Participant Account up to 10% of
the Account Value of that Participant Account (determined as of the
Contract Anniversary immediately preceding the request for the
withdrawal) without application of the Withdrawal Charge.
(b) Any benefit request submitted by the Contractholder shall include
certification as to the purpose of the request for payment. The
Contractholder assumes full responsibility for determining whether any
benefit payment is permitted under applicable law and under the terms
of the Plan. AUL may rely solely upon the representations of the
Contractholder made in the benefit request.
(c) Withdrawals from a Participant Account's share of any Investment
Option may not be made in an amount less than the smaller of $500 or
the Participant Account's entire share of the Investment Option. If a
withdrawal reduces the Participant Account's share of an Investment
Option to less than $500, such remaining share shall also be
withdrawn.
(d) Withdrawals from a Participant Account's share of the Fixed Interest
Account shall be made on a first-in/first-out basis so that all or a
portion of the amounts credited to the Participant Account's share of
the Fixed Interest Account which have been on deposit for the longest
period of time, as well as the interest credited thereon, shall be
withdrawn first.
(e) A withdrawal request shall be effective, and the Account Value to be
applied pursuant to Sections 4.1, 4.7, or 4.8 shall be determined, as
of the close of business on the Valuation Date that AUL receives a
proper withdrawal request (or, for death benefit requests, due proof
of death, if received later), in a form acceptable to AUL, at its Home
Office.
(f) AUL shall pay any cash lump sum to the Contractholder or to whomever
the Contractholder directs within 7 days from the appropriate
Valuation Date as determined in Subsection (e) above, except as AUL
may be permitted to defer such payment of amounts withdrawn from the
Variable Account in accordance with appropriate provisions of the
federal securities laws. AUL reserves the right to defer the payment
of amounts withdrawn from the Fixed Interest Account for a period of
up to 6 months after AUL receives the withdrawal request at its Home
Office.
(g) No withdrawals shall be permitted prior to the termination of this
contract except as provided in Sections 4.1, 4.7, and this Section
4.8.
5.1 Valuation of Mutual Fund or Mutual Fund Portfolio Assets: All assets of
each Mutual Fund or Mutual Fund Portfolio shall be valued as provided in
the prospectus for the applicable Mutual Fund or Mutual Fund Portfolio as
such prospectus may be amended or supplemented from time to time.
5.2 Accumulation Units: Any amounts allocated to any Investment Account on
behalf of a Participant shall be credited to his Participant Account in the
form of Accumulation Units on the basis of the value of such units in that
Investment Account as of the later of (1) the end of the Valuation Period
on which such amounts are received by AUL at its Home Office or (2) the end
of the Valuation Period on which the data required to establish the
Participant Account and allocate such amounts to the Participant Account
and to Investment Options are received by AUL at its Home Office. However,
if the initial Contribution for a Participant is allocated pursuant to
Section 3.2(b)(1) on the next succeeding Valuation Period, the unit value
as of the end of that Valuation Period shall be used. Such crediting shall
be made separately for amounts allocated to each Investment Account. The
number of Accumulation Units in each Investment Account credited to each
Participant Account as of any Valuation Period shall be determined by
dividing the amounts allocated to that Investment Account for that
Participant Account as of such Valuation Period by the dollar value of one
Accumulation Unit in that Investment Account as of the close of business on
the applicable Valuation Period. The number of Accumulation Units thus
determined shall not be changed by any subsequent change in the dollar
value of the Accumulation Units.
5.3 Value of Accumulation Units: The value of an Accumulation Unit in the AUL
American Equity, Bond, Money Market, and Managed Investment Accounts was
established at $1.00 as of April 12, 1990. The value of an Accumulation
Unit in any other Investment Account available under this contract shall be
established at $1.00 as of the date of the first deposit to such Investment
Account. The value of an Accumulation Unit in each Investment Account as of
any Valuation Period thereafter is equal to the dollar value of one
Accumulation Unit in that Investment Account as of the immediately
preceding Valuation Period multiplied by the Net Investment Factor, as
defined in Section 5.4, for that Investment Account for the current
Valuation Period. The value of an Accumulation Unit for each Investment
Account shall be determined for each Valuation Period before giving effect
to any additions, withdrawals, or transfers. After such determination, the
additions, withdrawals, or transfers which are effective as of that day
shall then be made.
5.4 Determining the Net Investment Factor: The Net Investment Factor for each
Investment Account for any Valuation Period is determined by dividing (a)
by (b), and then subtracting (c) from that result, where:
(a) is equal to:
(1) the net asset value of a Mutual Fund or Mutual Fund Portfolio
share held in the Investment Account determined as of the end of
the current Valuation Period, plus
(2) the per share amount of any dividend or other distribution, if
any, paid by the Mutual Fund or Mutual Fund Portfolio during the
current Valuation Period, plus or minus
p-12518(NBR).II
(3) any credit or charge for any taxes paid or reserved for by AUL
during the current Valuation Period which are determined by AUL
to be attributable to operation of the Investment Account;
(b) is the net asset value of a Mutual Fund or Mutual Fund Portfolio share
held in the Investment Account determined as of the end of the
immediately preceding Valuation Period; and
(c) is a daily charge factor determined by AUL to reflect the charges
assessed against the assets of the Investment Account for mortality
and expense risks, as authorized by Section 6.1.
6.1 Mortality Risk and Expense Risk Charges: AUL shall deduct a daily mortality
risk charge and a daily expense risk charge equal to the daily equivalent
of an annual combined charge of 1.25% against the average daily net assets
of each Investment Account. These charges shall be reflected in the Net
Investment Factor as provided in Section 5.4(c).
6.2 Mutual Fund or Mutual Fund Portfolio Expenses: A Mutual Fund or Mutual Fund
Portfolio shall pay any investment advisory fee and certain other expenses,
which may include its ordinary operational and organizational expenses, and
any extraordinary expenses, as described in the current prospectus for that
Mutual Fund or Mutual Fund Portfolio as it may be amended or supplemented
from time to time. These expenses may vary from year to year. The net asset
value of each Mutual Fund or Mutual Fund Portfolio share reflects such
investment advisory fee and other expenses which are deducted from the
assets of such Mutual Fund or Mutual Fund Portfolio.
6.3 Administrative Charge: AUL shall deduct an administrative charge per
Contract Quarter equal to the lesser of $7.50 or 0.5% of the Account Value
on the last day of each Contract Quarter from each Participant Account in
existence on such day for as long as the Participant Account is in effect
during the Accumulation Period. This charge is to be prorated among each
subaccount of the Participant Account which corresponds to each Investment
Option utilized under this contract by that Participant Account. If the
entire balance of a Participant Account is applied or withdrawn before the
last day of the Contract Quarter pursuant to Sections 4.1, 4.7, 4.8, 8.2,
or 8.4, the administrative charge attributable to the period of time which
has elapsed since the first day of the Contract Quarter in which such
application or withdrawal of funds is made shall not be deducted from the
amount applied or withdrawn.
6.5 Other Charges: AUL reserves the right to deduct the appropriate premium tax
charge at the time annuity payments commence pursuant to Sections 4.1 and
4.7 or such other time that premium taxes are incurred by AUL. AUL also
reserves the right to deduct the appropriate charges for federal, state, or
local income taxes incurred by AUL that are attributable to the Variable
Account and its Investment Accounts.
6.6 Reduction or Waiver of Certain Charges: AUL may reduce or waive the amount
of the Withdrawal Charge or the administrative charge discussed in Section
6.3 where the expenses associated with the sale of this contract or the
administrative costs associated with this contract are reduced, or where
this contract is sold to the directors or employees of AUL or any of its
affiliates, or to directors or any employees of the AUL American Series
Fund, Inc.
(Corporate stand-alone)
p-12518(NBR).II
(3) any credit or charge for any taxes paid or reserved for by AUL
during the current Valuation Period which are determined by AUL
to be attributable to operation of the Investment Account;
(b) is the net asset value of a Mutual Fund or Mutual Fund Portfolio share
held in the Investment Account determined as of the end of the
immediately preceding Valuation Period; and
(c) is a daily charge factor determined by AUL to reflect the charges
assessed against the assets of the Investment Account for mortality
and expense risks, as authorized by Section 6.1.
6.1 Mortality Risk and Expense Risk Charges: AUL shall deduct a daily mortality
risk charge and a daily expense risk charge equal to the daily equivalent
of an annual combined charge of 1.25% against the average daily net assets
of each Investment Account. These charges shall be reflected in the Net
Investment Factor as provided in Section 5.4(c).
6.2 Mutual Fund or Mutual Fund Portfolio Expenses: A Mutual Fund or Mutual Fund
Portfolio shall pay any investment advisory fee and certain other expenses,
which may include its ordinary operational and organizational expenses, and
any extraordinary expenses, as described in the current prospectus for that
Mutual Fund or Mutual Fund Portfolio as it may be amended or supplemented
from time to time. These expenses may vary from year to year. The net asset
value of each Mutual Fund or Mutual Fund Portfolio share reflects such
investment advisory fee and other expenses which are deducted from the
assets of such Mutual Fund or Mutual Fund Portfolio.
6.3 Administrative Charge: AUL shall deduct an administrative charge per
Contract Quarter equal to the lesser of $3.00 or 0.5% of the Account Value
on the last day of each Contract Quarter from each Participant Account in
existence on such day for as long as the Participant Account is in effect
during the Accumulation Period. This charge is to be prorated among each
subaccount of the Participant Account which corresponds to each Investment
Option utilized under this contract by that Participant Account. If the
entire balance of a Participant Account is applied or withdrawn before the
last day of the Contract Quarter pursuant to Sections 4.1, 4.7, 4.8, 8.2,
or 8.4, the administrative charge attributable to the period of time which
has elapsed since the first day of the Contract Quarter in which such
application or withdrawal of funds is made shall not be deducted from the
amount applied or withdrawn.
6.5 Other Charges: AUL reserves the right to deduct the appropriate premium tax
charge at the time annuity payments commence pursuant to Sections 4.1 and
4.7 or such other time that premium taxes are incurred by AUL. AUL also
reserves the right to deduct the appropriate charges for federal, state, or
local income taxes incurred by AUL that are attributable to the Variable
Account and its Investment Accounts.
6.6 Reduction or Waiver of Certain Charges: AUL may reduce or waive the amount
of the Withdrawal Charge or the administrative charge discussed in Section
6.3 where the expenses associated with the sale of this contract or the
administrative costs associated with this contract are reduced, or where
this contract is sold to the directors or employees of AUL or any of its
affiliates, or to directors or any employees of the AUL American Series
Fund, Inc.
(G&W stand-alone)
p-12518(NBR).II
(3) any credit or charge for any taxes paid or reserved for by AUL
during the current Valuation Period which are determined by AUL
to be attributable to operation of the Investment Account;
(b) is the net asset value of a Mutual Fund or Mutual Fund Portfolio share
held in the Investment Account determined as of the end of the
immediately preceding Valuation Period; and
(c) is a daily charge factor determined by AUL to reflect the charges
assessed against the assets of the Investment Account for mortality
and expense risks, as authorized by Section 6.1.
6.1 Mortality Risk and Expense Risk Charges: AUL shall deduct a daily mortality
risk charge and a daily expense risk charge equal to the daily equivalent
of an annual combined charge of 1.25% against the average daily net assets
of each Investment Account. These charges shall be reflected in the Net
Investment Factor as provided in Section 5.4(c).
6.2 Mutual Fund or Mutual Fund Portfolio Expenses: A Mutual Fund or Mutual Fund
Portfolio shall pay any investment advisory fee and certain other expenses,
which may include its ordinary operational and organizational expenses, and
any extraordinary expenses, as described in the current prospectus for that
Mutual Fund or Mutual Fund Portfolio as it may be amended or supplemented
from time to time. These expenses may vary from year to year. The net asset
value of each Mutual Fund or Mutual Fund Portfolio share reflects such
investment advisory fee and other expenses which are deducted from the
assets of such Mutual Fund or Mutual Fund Portfolio.
By adding the following first paragraph to Section 6.3:
6.3 Administrative Charge:
AUL hereby waives the administrative charge described hereafter in this
Section 6.3.
6.5 Other Charges: AUL reserves the right to deduct the appropriate premium tax
charge at the time annuity payments commence pursuant to Sections 4.1 and
4.7 or such other time that premium taxes are incurred by AUL. AUL also
reserves the right to deduct the appropriate charges for federal, state, or
local income taxes incurred by AUL that are attributable to the Variable
Account and its Investment Accounts.
6.6 Reduction or Waiver of Certain Charges: AUL may reduce or waive the amount
of the Withdrawal Charge or the administrative charge discussed in Section
6.3 where the expenses associated with the sale of this contract or the
administrative costs associated with this contract are reduced, or where
this contract is sold to the directors or employees of AUL or any of its
affiliates, or to directors or any employees of the AUL American Series
Fund, Inc.
By adding the following first paragraph to Section 7.3:
7.3 Right of AUL to Change Charges:
Because the administrative charge described in Section 6.3 has been waived
by AUL, the maximum administrative charge discussed hereafter in this
Section 7.3 shall be $0.00.
(Corporate companion)
(G&W companion)
p-12518(NBR).II
8.1 Right of Contractholder to Terminate: This contract shall terminate if the
Contractholder gives written notice to AUL that this contract is to be
terminated. In such event, the termination notice shall be effective as of
the close of business on the Valuation Date that AUL receives a proper
written Contractholder notice at its Home Office. This date shall be the
effective date of termination. This contract shall also terminate
automatically as of the date that there are no Participant Accounts
maintained hereunder.
9.2 AUL's Annual Statement: No provision or condition of this contract shall be
deemed to control, determine, or modify any annual statement of AUL made to
any insurance department, contractholder, regulatory body, or other person,
nor shall anything in such annual statement be deemed to control,
determine, or modify the valuation provided for in this contract, nor the
values determined, nor the market, book, or other value of any asset in any
Investment Account or Mutual Fund or Mutual Fund Portfolio, nor any of the
other provisions and conditions of this contract.
9.8 Election, Notice, or Direction Requirements: Wherever in this contract
reference is made to the Contractholder making a request or giving notice
or direction, such request, notice, or direction must be in writing, or in
a form otherwise acceptable to AUL, and must be submitted to and received
by AUL at its Home Office before becoming effective.
9.15 Voting:
(a) AUL is the legal owner of the shares of a Mutual Fund or Mutual Fund
Portfolio held by the Investment Accounts of the Variable Account. AUL
shall exercise voting rights attributable to the shares of each Mutual
Fund or Mutual Fund Portfolio held in the Investment Accounts at any
regular and special meetings of the shareholders of a Mutual Fund on
matters requiring shareholder voting under The Investment Company Act
of l940 or other applicable laws. AUL shall exercise these voting
rights based on instructions received from persons having the voting
interest in corresponding Investment Accounts of the Variable Account.
However, if The Investment Company Act of l940 or any regulations
thereunder should be amended, or if the present interpretation thereof
should change, and as a result AUL determines that it is permitted to
vote the shares of a Mutual Fund or Mutual Fund Portfolio in its own
right, it may elect to do so. AUL will vote shares of any Investment
Account, if any, that it owns beneficially in its own discretion,
except that if a Mutual Fund or Mutual Fund Portfolio offers its
shares to any insurance company separate account that funds variable
life insurance contracts or if otherwise required by applicable law,
AUL will vote its own shares in the same proportion as the voting
instructions that are received in a timely manner for contracts and
Participant Accounts participating in the Investment Account.
(b) The person having the voting interest under this contract is the
Contractholder. Unless otherwise required by applicable law, the
number of Mutual Fund or Mutual Fund Portfolio shares as to which
voting instructions may be given to AUL is determined by dividing the
value of all of the Accumulation Units of the corresponding Investment
Account attributable to this contract on a particular date by the net
asset value per share of that Mutual Fund or Mutual Fund Portfolio as
of the same date. Fractional votes will be counted. The number of
votes as to which voting instructions may be given will be determined
as of the date coincident with the date established by the applicable
Mutual Fund or Mutual Fund Portfolio for determining shareholders
eligible to vote at the meeting of that Mutual Fund. If required by
the Securities and Exchange Commission,
p-12518(NBR).II
AUL reserves the right to determine in a different fashion the voting
rights attributable to the shares of a Mutual Fund or Mutual Fund
Portfolio.
(c) Voting rights attributable to this contract for which no timely voting
instructions are received will be voted by AUL in the same proportion
as the voting instructions which are received in a timely manner for
all contracts and Participant Accounts participating in that
Investment Account.
(d) Neither the Variable Account nor AUL is under any duty to inquire as
to the instructions received or the authority of Contractholders,
Participants, or others to instruct the voting of Mutual Fund or
Mutual Fund Portfolio shares.
(e) Every person or entity having such voting rights shall receive such
reports or prospectuses concerning the Variable Account or a Mutual
Fund or Mutual Fund Portfolio as may be required by applicable federal
law.
AMERICAN UNITED LIFE INSURANCE COMPANY
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Chairman of the Board,
President, & Chief Executive Officer
Attest
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Secretary
CONTRACTHOLDER
By ___________________________________
Title_________________________________
Date _________________________________
p-12518(NBR).II
SCHEDULE A
The following Investment Accounts are made available to the Contractholder by
AUL. Amounts allocated to any Investment Account identified below shall be
invested in the shares of the corresponding Mutual Fund or Mutual Fund Portfolio
listed below.
Investment Account Mutual Fund or Mutual Fund Portfolio
------------------ ------------------------------------
AUL American Bond AUL American Bond
AUL American Equity AUL American Equity
AUL American Managed AUL American Managed
AUL American Money Market AUL American Money Market
AUL American Tactical Asset Allocation Portfolio AUL American Tactical Asset Allocation Portfolio
▇▇▇▇▇ American Growth ▇▇▇▇▇ American Growth
▇▇▇▇▇▇▇ Social Mid-Cap Growth ▇▇▇▇▇▇▇ Social Mid-Cap Growth
Fidelity VIP Equity-Income Fidelity VIP Equity-Income
Fidelity VIP Growth Fidelity VIP Growth
Fidelity VIP High Income Fidelity VIP High Income
Fidelity VIP Overseas Fidelity VIP Overseas
Fidelity VIP II Asset Manager Fidelity VIP II Asset Manager
Fidelity VIP II Contrafund Fidelity VIP II Contrafund
Fidelity VIP II Index 500 Fidelity VIP II Index 500
Janus Aspen Series Flexible Income Portfolio Janus Aspen Series Flexible Income Portfolio
Janus Aspen Series Worldwide Growth Portfolio Janus Aspen Series Worldwide Growth Portfolio
PBHG Insurance Series Growth II PBHG Insurance Series Growth II
PBHG Insurance Series Technology PBHG Insurance Series Technology
and Communication and Communication
SAFECO Resource Series Trust Equity Portfolio SAFECO Resource Series Trust Equity Portfolio
SAFECO Resource Series Trust Growth Portfolio SAFECO Resource Series Trust Growth Portfolio
▇. ▇▇▇▇ Price Equity-Income Portfolio ▇. ▇▇▇▇ Price Equity-Income Portfolio
p-12518(NBR).II
AMENDMENT
TO THE
AUL AMERICAN SERIES
DCP MULTIPLE-FUND GROUP VARIABLE ANNUITY
CONTRACT NUMBER GA XX,XXX (THE CONTRACT)
ISSUED BY
AMERICAN UNITED LIFE INSURANCE COMPANY (AUL)
TO
ABC HOSPITAL
(THE CONTRACTHOLDER)
The Effective Date of this Amendment is January 1, 1994.
AUL and the Contractholder hereby agree, by signing below, that the Contract is
hereby amended as follows:
By deleting the last paragraph on the face page and by substituting the
following last paragraph in lieu thereof:
ACCUMULATION UNITS IN ANY INVESTMENT ACCOUNT FOR WHICH THIS CONTRACT MAKES
PROVISION MAY INCREASE OR DECREASE IN DOLLAR VALUE ACCORDING TO THE INVESTMENT
PERFORMANCE OF THE UNDERLYING ASSETS IN THE CORRESPONDING MUTUAL FUND OR MUTUAL
FUND PORTFOLIO IN WHICH THE INVESTMENT ACCOUNT INVESTS. THE VALUE OF SUCH ASSETS
AND ACCUMULATION UNITS IS NOT GUARANTEED. ARTICLE 5 OF THIS CONTRACT EXPLAINS
THE VALUATION OF SUCH ASSETS AND ACCUMULATION UNITS.
By deleting the corresponding Sections or Subsections of the Contract and by
substituting the following Sections or Subsections in lieu thereof, and by
making any required corresponding changes in the Table of Contents of the
Contract:
1.4 "Contract Anniversary" means the first day of the second Contract Year and
each subsequent Contract Year. Each Contract Anniversary after the First
Contract Anniversary shall be the same day of the same month as the day and
month which is stated on the face page of this contract for the First
Contract Anniversary.
By deleting the first sentence of Section 1.7 and by substituting the following
first sentence in lieu thereof:
1.7 "Contributions" means amounts paid to AUL by the Contractholder pursuant to
the Plan, including amounts transferred to this contract from another AUL
group annuity contract, which are credited to a Participant Account
maintained hereunder.
1.12 "Investment Account" means each subaccount of the Variable Account which is
maintained by AUL and made available to the Contractholder by AUL and
identified in Schedule A of the contract. Schedule A of the contract may be
amended by AUL from time to time as described in Section 3.3. Amounts
allocated to any Investment Account identified in Schedule A of the
contract shall be invested in the shares of the corresponding Mutual Fund
or Mutual Fund Portfolio listed in the current prospectus for the Variable
Account.
P-12518(BR).II.1
1.15 "Mutual Fund" means the AUL American Series Fund, Inc., a diversified,
open-end management investment company registered under The Investment
Company Act of l940, and any other such open-end management investment
company made available by AUL, as listed in Schedule A.
1.19 "Portfolio" (also known as a "Mutual Fund Portfolio") means a portfolio
established within a particular Mutual Fund as described in that prospectus
for that Mutual Fund, as such prospectus may be amended or supplemented
from time to time.
1.23 "Withdrawal Charge" means a charge taken by AUL equal to a percentage of
the Account Value withdrawn under this contract, other than withdrawals to
provide those benefits discussed in Section 4.7, as provided by the Plan,
where the percentage varies by the Participant Account Year in which the
withdrawal is made. The first Participant Account Year begins on the date
when AUL establishes a Participant Account and credits the initial
Contribution for the Participant, and ends on the day immediately preceding
the next anniversary of such date. Each Participant Account Year thereafter
begins on such an anniversary date and ends on the day immediately
preceding the next succeeding anniversary date. The Withdrawal Charge
percentage is as follows:
During Withdrawal Charge
Participant Account Years Percentage
1-5 8%
6-10 4%
Thereafter 0%
However, for any Participant who also participates in AUL Series III group
annuity contract GA XX,XXX, the initial Withdrawal Charge percentage under
this contract shall be equal to the Withdrawal Charge percentage applicable
to the Participant under the AUL Series I group annuity contract from which
funds have been transferred to such Series III contract, determined by AUL
immediately prior to the date of such transfer, rounded down to the next
whole Withdrawal Charge percentage if the Withdrawal Charge percentage
under such Series I contract is a fractional Withdrawal Charge percentage.
However, the Withdrawal Charge percentage under this paragraph shall never
be greater than 8%. The Withdrawal Charge percentage shall be decreased by
1% for each subsequent Participant Account Year until the Withdrawal Charge
percentage equals 4%. (However, if the applicable Series I contract
Withdrawal Charge percentage is less than 4%, it shall be rounded up to 4%
in this contract.) This 4% Withdrawal Charge percentage shall be in effect
during the next 6 consecutive Participant Account Years. Thereafter, the
Withdrawal Charge percentage shall be reduced to 0%.
In no event will the cumulative total of all Withdrawal Charges, including
those previously assessed against any amount withdrawn from a Participant
Account, exceed 9% of total Contributions allocated to that Participant
Account.
3.2 How Contributions are Handled:
(a) Contributions received at the Home Office shall be credited to the
appropriate subaccounts of each of the Participant Accounts as
directed by the Contractholder in written allocation instructions.
(Old Contract DCP I)
P-12518(BR).II.2
1.15 "Mutual Fund" means the AUL American Series Fund, Inc., a diversified,
open-end management investment company registered under The Investment
Company Act of l940, and any other such open-end management investment
company made available by AUL, as listed in Schedule A.
1.19 "Portfolio" (also known as a "Mutual Fund Portfolio") means a portfolio
established within a particular Mutual Fund as described in that prospectus
for that Mutual Fund, as such prospectus may be amended or supplemented
from time to time.
1.23 "Withdrawal Charge" means a charge taken by AUL equal to a percentage of
the Account Value withdrawn under this contract, other than withdrawals to
provide those benefits discussed in Section 4.7, as provided by the Plan,
where the percentage varies by the Participant Account Year in which the
withdrawal is made. The first Participant Account Year begins on the date
when AUL establishes a Participant Account and credits the initial
Contribution for the Participant, and ends on the day immediately preceding
the next anniversary of such date. Each Participant Account Year thereafter
begins on such an anniversary date and ends on the day immediately
preceding the next succeeding anniversary date. The Withdrawal Charge
percentage is as follows:
During Withdrawal Charge
Participant Account Years Percentage
1-5 8%
6-10 4%
Thereafter 0%
However, for any Participant who also participates in companion AUL Series
III group annuity contract GA XX,XXX, the initial Withdrawal Charge
percentage under this contract shall be equal to the Withdrawal Charge
percentage applicable to the Participant under the previous AUL Series
III group annuity contract (with a Series I Withdrawal Charge schedule)
from which funds have been transferred to such companion Series III
contract, determined by AUL immediately prior to the date of such transfer,
rounded down to the next whole Withdrawal Charge percentage if the With-
drawal Charge percentage under such previous Series III contract is a
fractional Withdrawal Charge percentage. However, the Withdrawal Charge
percentage under this paragraph shall never be greater than 8%. The With-
drawal Charge percentage shall be decreased by 1% for each subsequent
Participant Account Year until the Withdrawal Charge percentage equals 4%.
(However, if the applicable Withdrawal Charge percentage in such previous
Series III contract is less than 4%, it shall be rounded up to 4% in this
contract.) This 4% Withdrawal Charge percentage shall be in effect during
the next 6 consecutive Participant Account Years. Thereafter, the With-
drawal Charge percentage shall be reduced to 0%.
In no event will the cumulative total of all Withdrawal Charges, including
those previously assessed against any amount withdrawn from a Participant
Account, exceed 9% of total Contributions allocated to that Participant
Account.
3.2 How Contributions are Handled:
(a) Contributions received at the Home Office shall be credited to the
appropriate subaccounts of each of the Participant Accounts as
directed by the Contractholder in written allocation instructions.
(original DCP III -- Series I)
P-12518(BR).II.2
1.15 "Mutual Fund" means the AUL American Series Fund, Inc., a diversified,
open-end management investment company registered under The Investment
Company Act of l940, and any other such open-end management investment
company made available by AUL, as listed in Schedule A.
1.19 "Portfolio" (also known as a "Mutual Fund Portfolio") means a portfolio
established within a particular Mutual Fund as described in that prospectus
for that Mutual Fund, as such prospectus may be amended or supplemented
from time to time.
1.23 "Withdrawal Charge" means a charge taken by AUL equal to a percentage of
the Account Value withdrawn under this contract, other than withdrawals to
provide those benefits discussed in Section 4.7, as provided by the Plan,
where the percentage varies by the Participant Account Year in which the
withdrawal is made. The first Participant Account Year begins on the date
when AUL establishes a Participant Account and credits the initial
Contribution for the Participant, and ends on the day immediately preceding
the next anniversary of such date. Each Participant Account Year thereafter
begins on such an anniversary date and ends on the day immediately
preceding the next succeeding anniversary date. The Withdrawal Charge
percentage is as follows:
During Withdrawal Charge
Participant Account Years Percentage
1-5 8%
6-10 4%
Thereafter 0%
However, for any Participant who also participates in the companion AUL
Series III group annuity contract GA XX,XXX, the initial Withdrawal Charge
percentage under this contract shall be equal to the Withdrawal Charge
percentage applicable to the Participant under the previous AUL Series III
group annuity contract from which funds have been transferred to such
Series III companion contract, determined by AUL immediately prior to the
date of such transfer, rounded down to 8% if the Withdrawal Charge
percentage under such previous Series III contract is greater than 8%. If
the Withdrawal Charge percentage is rounded down from 10% to 8%, the 8%
Withdrawal Charge percentage shall be in effect through that Participant
Account Year and through the next 2 succeeding Participant Account Years.
If the Withdrawal Charge percentage is rounded down from 9% to 8%, the 8%
Withdrawal Charge percentage shall be in effect through that Participant
Account Year and through the next succeeding Participant Account Year.
Thereafter, the Withdrawal Charge percentage shall be decreased by 1% for
each subsequent Participant Account Year until the Withdrawal Charge
percentage equals 0%.
In no event will the cumulative total of all Withdrawal Charges, including
those previously assessed against any amount withdrawn from a Participant
Account, exceed 9% of total Contributions allocated to that Participant
Account.
3.2 How Contributions are Handled:
(a) Contributions received at the Home Office shall be credited to the
appropriate subaccounts of each of the Participant Accounts as
directed by the Contractholder in written allocation instructions.
(original contract DCP III -- Series III)
P-12518(BR).II.2
1.15 "Mutual Fund" means the AUL American Series Fund, Inc., a diversified,
open-end management investment company registered under The Investment
Company Act of l940, and any other such open- end management investment
company made available by AUL, as listed in Schedule A.
1.19 "Portfolio" (also known as a "Mutual Fund Portfolio") means a portfolio
established within a particular Mutual Fund as described in that prospectus
for that Mutual Fund, as such prospectus may be amended or supplemented
from time to time.
1.23 "Withdrawal Charge" means a charge taken by AUL equal to a percentage of
the Account Value withdrawn under this contract, other than withdrawals to
provide those benefits discussed in Section 4.7, as provided by the Plan,
where the percentage varies by the Participant Account Year in which the
withdrawal is made. The first Participant Account Year begins on the date
when AUL establishes a Participant Account and credits the initial
Contribution for the Participant, and ends on the day immediately preceding
the next anniversary of such date. Each Participant Account Year thereafter
begins on such an anniversary date and ends on the day immediately
preceding the next succeeding anniversary date. The Withdrawal Charge
percentage is as follows:
During Withdrawal Charge
Participant Account Years Percentage
1-5 8%
6-10 4%
Thereafter 0%
However, for any Participant who also participates in AUL GRA VIII (BR)
group annuity contract GA XX,XXX, and for whom funds have been transferred
to such GRA VIII (BR) contract from an AUL GRA VI (with a Series I With-
drawal Charge schedule) group annuity contract, the initial Withdrawal
Charge percentage under this contract shall be equal to the Withdrawal
Charge percentage applicable to the Participant under such GRA VI
contract, determined by AUL immediately prior to the date of such transfer,
rounded down to the next whole Withdrawal Charge percentage if the With-
drawal Charge percentage under such GRA VI contract is a fractional With-
drawal Charge percentage. However, the Withdrawal Charge percentage under
this paragraph shall never be greater than 8%. The Withdrawal Charge
percentage shall be decreased by 1% for each subsequent Participant Account
Year until the Withdrawal Charge percentage equals 4%. (However, if the
applicable Withdrawal Charge percentage in such GRA VI contract is less
than 4%, it shall be rounded up to 4% in this contract.) This 4% With-
drawal Charge percentage shall be in effect during the next 6 consecutive
Participant Account Years. Thereafter, the Withdrawal Charge percentage
shall be reduced to 0%.
In no event will the cumulative total of all Withdrawal Charges, including
those previously assessed against any amount withdrawn from a Participant
Account, exceed 9% of total Contributions allocated to that Participant
Account.
3.2 How Contributions are Handled:
(a) Contributions received at the Home Office shall be credited to the
appropriate subaccounts of each of the Participant Accounts as
directed by the Contractholder in written allocation instructions.
(no previous DCP -- match with GRA VIII BR where transfer from previous GRA VI,
Series I)
P-12518(BR).II.2
1.15 "Mutual Fund" means the AUL American Series Fund, Inc., a diversified,
open-end management investment company registered under The Investment
Company Act of l940, and any other such open- end management investment
company made available by AUL, as listed in Schedule A.
1.19 "Portfolio" (also known as a "Mutual Fund Portfolio") means a portfolio
established within a particular Mutual Fund as described in that prospectus
for that Mutual Fund, as such prospectus may be amended or supplemented
from time to time.
1.23 "Withdrawal Charge" means a charge taken by AUL equal to a percentage of
the Account Value withdrawn under this contract, other than withdrawals to
provide those benefits discussed in Section 4.7, as provided by the Plan,
where the percentage varies by the Participant Account Year in which the
withdrawal is made. The first Participant Account Year begins on the date
when AUL establishes a Participant Account and credits the initial
Contribution for the Participant, and ends on the day immediately preceding
the next anniversary of such date. Each Participant Account Year thereafter
begins on such an anniversary date and ends on the day immediately
preceding the next succeeding anniversary date. The Withdrawal Charge
percentage is as follows:
During Withdrawal Charge
Participant Account Years Percentage
1-5 8%
6-10 4%
Thereafter 0%
However, for any Participant who also participates in AUL GRA VIII (BR)
group annuity contract GA XX,XXX, and for whom funds have been transferred
to such GRA VIII (BR) contract from an AUL GRA VI (with a Series III
Withdrawal Charge schedule) group annuity contract, the initial Withdrawal
Charge percentage under this contract shall be equal to the Withdrawal
Charge percentage applicable to the Participant under such GRA VI contract,
determined by AUL immediately prior to the date of such transfer, rounded
down to 8% if the Withdrawal Charge percentage under such previous GRA VI
contract is greater than 8%. If the Withdrawal Charge percentage is rounded
down from 10% to 8%, the 8% Withdrawal Charge percentage shall be in effect
through that Participant Account Year and through the next 2 succeeding
Participant Account Years. If the Withdrawal Charge percentage is rounded
down from 9% to 8%, the 8% Withdrawal Charge percentage shall be in effect
through that Participant Account Year and through the next succeeding
Participant Account Year. Thereafter, the Withdrawal Charge percentage
shall be decreased by 1% for each subsequent Participant Account Year until
the Withdrawal Charge percentage equals 0%.
In no event will the cumulative total of all Withdrawal Charges, including
those previously assessed against any amount withdrawn from a Participant
Account, exceed 9% of total Contributions allocated to that Participant
Account.
3.2 How Contributions are Handled:
(a) Contributions received at the Home Office shall be credited to the
appropriate subaccounts of each of the Participant Accounts as
directed by the Contractholder in written allocation instructions.
(no previous DCP -- match with GRA VIII BR where transfer from previous GRA VI,
Series III)
P-12518(BR).II.2
1.15 "Mutual Fund" means the AUL American Series Fund, Inc., a diversified,
open-end management investment company registered under The Investment
Company Act of l940, and any other such open- end management investment
company made available by AUL, as listed in Schedule A.
1.19 "Portfolio" (also known as a "Mutual Fund Portfolio") means a portfolio
established within a particular Mutual Fund as described in that prospectus
for that Mutual Fund, as such prospectus may be amended or supplemented
from time to time.
1.23 "Withdrawal Charge" means a charge taken by AUL equal to a percentage of
the Account Value withdrawn under this contract, other than withdrawals to
provide those benefits discussed in Section 4.7, as provided by the Plan,
where the percentage varies by the Participant Account Year in which the
withdrawal is made. The first Participant Account Year begins on the date
when AUL establishes a Participant Account and credits the initial
Contribution for the Participant, and ends on the day immediately preceding
the next anniversary of such date. Each Participant Account Year thereafter
begins on such an anniversary date and ends on the day immediately
preceding the next succeeding anniversary date. The Withdrawal Charge
percentage is as follows:
During Withdrawal Charge
Participant Account Years Percentage
1-5 8%
6-10 4%
Thereafter 0%
However, for any Participant who also participates in AUL GRA VIII (BR)
group annuity contract GA XX,XXX, and for whom funds have been transferred
to such GRA VIII (BR) contract from an AUL GRA I group annuity contract,
the initial Withdrawal Charge percentage under this contract shall be equal
to the Withdrawal Charge percentage applicable to the Participant under
such GRA I contract, determined by AUL immediately prior to the date of
such transfer, rounded down to the next whole Withdrawal Charge percentage
if the Withdrawal Charge percentage under such GRA I contract is a
fractional Withdrawal Charge percentage. However, the Withdrawal Charge
percentage under this paragraph shall never be greater than 8%. The With-
drawal Charge percentage shall be decreased by 1% for each subsequent
Participant Account Year until the Withdrawal Charge percentage equals 4%.
(However, if the applicable Withdrawal Charge percentage in such GRA I
contract is less than 4%, it shall be rounded up to 4% in this contract.)
This 4% Withdrawal Charge percentage shall be in effect during the next
6 consecutive Participant Account Years. Thereafter, the Withdrawal Charge
percentage shall be reduced to 0%.
In no event will the cumulative total of all Withdrawal Charges, including
those previously assessed against any amount withdrawn from a Participant
Account, exceed 9% of total Contributions allocated to that Participant
Account.
3.2 How Contributions are Handled:
(a) Contributions received at the Home Office shall be credited to the
appropriate subaccounts of each of the Participant Accounts as
directed by the Contractholder in written allocation instructions.
(no previous DCP -- match with GRA VIII BR where transfer from previous GRA I)
P-12518(BR).II.2
(b) Within any one Participant Account, the amount so credited shall be
allocated to an Investment Option in increments elected in a form
acceptable to AUL by the Contractholder or by that person designated
to AUL by the Contractholder. If no Investment Option election is made
with respect to a particular Contribution to any Participant Account,
AUL shall process such credits in accordance with the Investment
Option election applicable to the immediately preceding Contribution.
The Contractholder or such designated person may change an Investment
Option election with respect to future allocations to the applicable
Participant Account by giving new Investment Option elections to AUL
at its Home Office in a form acceptable to AUL.
(c) The initial Contribution for a Participant shall be allocated to the
Participant Account no later than the close of business on the second
business day of AUL after the later of (1) the business day that AUL
receives the initial Contribution at its Home Office, or (2) the
business day that AUL receives, at its Home Office, the data required
to establish the Participant Account, instructions regarding the
amount of the initial Contribution for the Participant, and Investment
Option elections regarding the initial Contribution.
(d) If the data required to establish a Participant Account and
instructions regarding the amount of a Contribution for the
Participant are not received by AUL at its Home Office within 5
business days after AUL first receives that Contribution, AUL shall
return that Contribution to the Contractholder unless the
Contractholder consents to AUL retaining that Contribution until the
earlier of (i) the date AUL receives such data and instructions and,
therefore, can properly allocate that Contribution to the Participant
Account or (ii) 25 days from the date that Contribution is received by
AUL.
(e) If the data required to establish a Participant Account, including any
annuity enrollment form required by AUL, and instructions regarding
the amount of a Contribution for the Participant are received, but an
Investment Option election for that Participant is not received, by
AUL at its Home Office as of the date AUL receives that Contribution,
AUL shall allocate that Contribution to the Investment Option election
identified in the Participant's annuity enrollment form, which is
generally the AUL American Money Market Investment Account. If AUL
subsequently receives a proper Investment Option election for the
Participant, AUL shall then transfer such amounts credited to the AUL
American Money Market Investment Account or other Investment Option
identified in the Participant's annuity enrollment form, plus gains or
minus losses thereon, to another Investment Option, if such election
so directs.
(f) Contributions for a Participant subsequent to the initial Contribution
shall be allocated to the Participant Account as of the close of
business on the later of (1) the Valuation Period in which AUL
receives that Contribution at its Home Office or (2) the Valuation
Period in which AUL receives, at its Home Office, the data required to
establish the Participant Account, instructions regarding the amount
of that Contribution for the Participant, and Investment Option
elections.
3.3 Addition, Deletion, or Substitution of Investments:
(a) AUL reserves the right, subject to compliance with applicable law, to
make additions to, deletions from, substitution for, or combinations
of, the securities that are held by the Variable Account or any
Investment Account or that the Variable Account or any Investment
Account may purchase. AUL reserves the right to eliminate the shares
of any of the eligible Mutual Funds or Mutual Fund Portfolios and to
substitute shares of, or interests in, another Portfolio of the AUL
American Series Fund, Inc., another open-end, registered investment
company, or another investment vehicle, for shares already purchased
or to be purchased in the future under the contract, if the shares of
any or all
P-12518(BR).II.3
eligible Mutual Funds or Mutual Fund Portfolios are no longer avail-
able for investment or if further investment in any or all eligible
Mutual Funds or Mutual Fund Portfolios becomes inappropriate in view
of the purposes of the Variable Account or the contract. Where
required under applicable law, AUL will not substitute any shares
attributable to the Contractholder's interest in the Variable Account
or any Investment Account without notice, Contractholder or
Participant approval, or prior approval of the Securities and Exchange
Commission or a state insurance commissioner, and without following
the filing or other procedures established by applicable state
insurance regulators. Nothing contained herein shall prevent the
Variable Account from purchasing other securities for other series or
classes of contracts, or from effecting a conversion between series or
classes of contracts on the basis of requests made by a majority of
other contractholders or as permitted by federal law.
(b) AUL reserves the right to establish additional Investment Accounts,
each of which would invest in the corresponding Mutual Fund or Mutual
Fund Portfolio listed in the current prospectus for the Variable
Account, or in other securities or investment vehicles. AUL reserves
the right to eliminate or combine existing Investment Accounts if
marketing, tax, or investment conditions so warrant. AUL also reserves
the right to provide other Investment Options under this contract at
any time. Subject to any required regulatory approvals, AUL reserves
the right to transfer assets from any Investment Account to another
separate account of AUL or Investment Account.
(c) In the event of any such substitution or change, AUL may, by
appropriate amendment, make such changes in this contract as may be
necessary or appropriate to reflect such substitution or change. If
deemed by AUL to be in the best interests of persons or entities
having voting rights under this contract, the Variable Account may be
operated as a management investment company under The Investment
Company Act of 1940 or any other form permitted by law, it may be
deregistered in the event such registration is no longer required
under The Investment Company Act of 1940, or it may be combined with
other separate accounts of AUL or an affiliate thereof. AUL may take
such action as is necessary to comply with, or to obtain, exemptions
from the Securities and Exchange Commission with regard to the
Variable Account. Subject to compliance with applicable law, AUL also
may combine one or more Investment Accounts and may establish a
committee, board, or other group to manage one or more aspects of the
operation of the Variable Account.
3.4 Transfers:
(a) Subject to the limitations of Section 3.5, the Contractholder, or that
person designated to AUL by the Contractholder, may direct AUL, in a
form acceptable to AUL, to transfer the amounts credited to an
Investment Option to any other Investment Option during the
Accumulation Period. Any transfer from an Investment Account shall be
effective as of the close of business on the Valuation Date that AUL
receives that transfer direction at its Home Office.
(b) AUL shall make the transfer as requested within 3 days from the date a
proper request is received by AUL at its Home Office, except as AUL
may be permitted to defer such payment of amounts withdrawn from the
Variable Account in accordance with appropriate provisions of the
federal securities laws. AUL reserves the right to defer a transfer of
amounts from the Fixed Interest Account for a period of up to 6 months
after AUL receives the transfer request at its Home Office.
3.5 Limitations on Transfers:
(BR)
P-12518(BR).II.4
(a) The minimum transfer from the Participant Account's share of any
Investment Option is the lesser of $500 or the Participant Account's
entire share of that Investment Option as of the close of business on
the Valuation Date that AUL receives that transfer direction at its
Home Office. However, if that transfer reduces the Participant
Account's remaining share of that Investment Option to less than $500,
the entire remaining share shall also be transferred.
(b) Amounts transferred from the Fixed Interest Account on behalf of a
Participant during any Contract Year shall not exceed 20% of the
Participant Account's share of the Fixed Interest Account determined
as of the later of the Contract Date or the Contract Anniversary
immediately preceding the request for transfer. Notwithstanding the
previous sentence, if the Participant Account's share of the Fixed
Interest Account is less than $2,500 determined as of the later of the
Contract Date or the Contract Anniversary immediately preceding the
request for transfer, the amount transferrable from the Fixed Interest
Account for that Contract Year is the lesser of $500 or the
Participant Account's entire share of the Fixed Interest Account as of
the close of business on the Valuation Date that AUL receives that
transfer direction at its Home Office. And if that transfer reduces
the Participant Account's remaining share of the Fixed Interest
Account to less than $500, the entire remaining share shall also be
transferred.
4.1 Election of Annuity Options: At the written request of the Contractholder
pursuant to Section 4.7, AUL shall apply all or a portion of the Account
Value (subject to Section 6.5) of a Participant Account for the purpose of
providing a fixed payment annuity under the Plan. Upon receipt of a request
for an annuity, AUL is hereby authorized by the Contractholder to value and
transfer the Participant Account's share of the Variable Account to the
Fixed Interest Account as of the date provided in Section 4.9(d). Such
transferred amounts shall be held in the Fixed Interest Account until such
time as such amounts are used to provide an annuity under the Plan. The
Contractholder request shall include certification as to the purpose for
the annuity and the election of one of the annuity options listed in
Section 4.2. The amount of any annuity shall be computed from the Table of
Immediate Annuities then included in this contract, except as provided
under Section 4.4.
4.7 "Benefit Responsive" Plan Benefits and Annuities: Subject to the
limitations provided in Section 4.9, at any time prior to termination of
the contract pursuant to the provisions of Article 8, the Contractholder
may direct AUL to withdraw all or a portion of the Account Value (subject
to Section 6.5) of a Participant Account for the purpose of providing:
(a) an annuity in accordance with the Annuity Options shown in Section
4.2, as directed by the Contractholder, for benefits as provided by
the Plan (other than Plan termination benefits); or
(b) a cash lump-sum payment to the Contractholder or to whomever the
Contractholder directs to pay benefits as provided by the Plan (other
than Plan termination benefits) for retirement, death, disability,
termination of employment, unforeseen emergencies, or required minimum
distribution benefits pursuant to Internal Revenue Code Section
401(a)(9) and Regulations issued thereunder.
(BR)
P-12518(BR).II.5
3.5 Limitations on Transfers:
(a) The minimum transfer from the Participant Account's share of any
Investment Option is the lesser of $500 or the Participant Account's
entire share of that Investment Option as of the close of business on
the Valuation Date that AUL receives that transfer direction at its
Home Office. However, if that transfer reduces the Participant
Account's remaining share of that Investment Option to less than $500,
the entire remaining share shall also be transferred.
(b) Amounts transferred from the Fixed Interest Account on behalf of a
Participant during any Contract Year shall not exceed 20% of the
Participant Account's share of the Fixed Interest Account determined
as of the later of the Contract Date or the Contract Anniversary
immediately preceding the request for transfer. Notwithstanding the
previous sentence, if the Participant Account's share of the Fixed
Interest Account is less than $2,500 determined as of the later of the
Contract Date or the Contract Anniversary immediately preceding the
request for transfer, the amount transferrable from the Fixed Interest
Account for that Contract Year is the lesser of $500 or the
Participant Account's entire share of the Fixed Interest Account as of
the close of business on the Valuation Date that AUL receives that
transfer direction at its Home Office. And if that transfer reduces
the Participant Account's remaining share of the Fixed Interest
Account to less than $500, the entire remaining share shall also be
transferred.
4.1 Election of Annuity Options: At the written request of the Contractholder
pursuant to Section 4.7, AUL shall apply all or a portion of the Account
Value (subject to Section 6.5) of a Participant Account for the purpose of
providing a fixed payment annuity under the Plan. Upon receipt of a request
for an annuity, AUL is hereby authorized by the Contractholder to value and
transfer the Participant Account's share of the Variable Account to the
Fixed Interest Account as of the date provided in Section 4.9(d). Such
transferred amounts shall be held in the Fixed Interest Account until such
time as such amounts are used to provide an annuity under the Plan. The
Contractholder request shall include certification as to the purpose for
the annuity and the election of one of the annuity options listed in
Section 4.2. The amount of any annuity shall be computed from the Table of
Immediate Annuities then included in this contract, except as provided
under Section 4.4.
4.7 "Benefit Responsive" Plan Benefits and Annuities: Subject to the
limitations provided in Section 4.9, at any time prior to termination of
the contract pursuant to the provisions of Article 8, the Contractholder
may direct AUL to withdraw all or a portion of the Account Value (subject
to Section 6.5) of a Participant Account for the purpose of providing:
(a) an annuity in accordance with the Annuity Options shown in Section
4.2, as directed by the Contractholder, for benefits as provided by
the Plan (other than Plan termination benefits); or
(b) a cash lump-sum payment to the Contractholder or to whomever the
Contractholder directs to pay death benefits as provided by the Plan
(other than plan termination benefits); or
(c) providing the Participant has attained (1) age 55 and has 10 years of
service with the employer identified in the Plan or (2) age 62, a cash
lump-sum payment to the Contractholder or to whomever the
Contractholder directs to pay benefits as provided by the Plan (other
than Plan termination benefits) for retirement, disability,
termination of employment, unforeseen emergencies, or required minimum
distribution benefits pursuant to Internal Revenue Code Section
401(a)(9) and Regulations issued thereunder.
4.8 Other Plan Benefits Payable in Cash: Subject to the limitations provided in
Section 4.9, at any time prior to termination of the contract pursuant to
the provisions of Article 8, the Contractholder may
(MBR)
P-12518(BR).II.5
direct AUL to make a cash payment from a Participant Account to the
Contractholder or to whomever the Contractholder directs for the purpose of
providing Plan benefits other than those provided in Section 4.7(b) and
(c). If it is necessary to withdraw the entire Account Value of a
Participant Account to make such payment, the amount paid shall equal the
Withdrawal Value, minus any Section 6.5 charges. If it is not necessary to
withdraw the entire Account Value to make such payment, AUL shall reduce
the Account Value of the Participant Account by an amount sufficient to
make the cash payment requested and to cover the Withdrawal Charge and any
Section 6.5 charges.
Notwithstanding the previous paragraph, in the first Contract Year in which
a Participant Account is established, the Contractholder may withdraw from
that Participant Account up to 10% of the sum of the Account Value of that
Participant Account (determined as of the later of the Contract Date or the
Contract Anniversary immediately preceding the request for the withdrawal)
plus Contributions made during that Contract Year, without application of
the Withdrawal Charge. In the next succeeding Contract Year, the
Contractholder may also withdraw from that Participant Account up to 10% of
the sum of the Account Value of that Participant Account (determined as of
the Contract Anniversary immediately preceding the request for the
withdrawal) plus Contributions made during that Contract Year, without
application of the Withdrawal Charge. In any subsequent Contract Year, the
Contractholder may withdraw from that Participant Account up to 10% of the
Account Value of that Participant Account (determined as of the Contract
Anniversary immediately preceding the request for the withdrawal) without
application of the Withdrawal Charge.
4.9 Conditions for Payment of Benefits:
(a) Any benefit request submitted by the Contractholder shall include
certification as to the purpose of the request for payment. The
Contractholder assumes full responsibility for determining whether any
benefit payment is permitted under applicable law and under the terms
of the Plan. AUL may rely solely upon the representations of the
Contractholder made in the benefit request.
(b) Withdrawals from a Participant Account's share of any Investment
Option may not be made in an amount less than the smaller of $500 or
the Participant Account's entire share of the Investment Option as of
the close of business on the Valuation Date that AUL receives that
withdrawal request (or due proof of death, if received later), in a
form acceptable to AUL, at its Home Office. If a withdrawal reduces
the Participant Account's share of an Investment Option to less than
$500, such remaining share shall also be withdrawn.
(c) Withdrawals from a Participant Account's share of the Fixed Interest
Account shall be made on a first-in/first-out basis so that all or a
portion of the amounts credited to the Participant Account's share of
the Fixed Interest Account which have been on deposit for the longest
period of time, as well as the interest credited thereon, shall be
withdrawn first.
(d) A withdrawal request shall be effective, and the Account Value to be
applied pursuant to Sections 4.1, 4.7, or 4.8 shall be determined, as
of the close of business on the Valuation Date that AUL receives a
proper withdrawal request (or due proof of death, if received later),
in a form acceptable to AUL, at its Home Office.
(MBR)
P-12518(BR).II.6
4.8 Other Plan Benefits Payable in Cash: Subject to the limitations provided in
Section 4.9, at any time prior to termination of the contract pursuant to
the provisions of Article 8, the Contractholder may direct AUL to make a
cash payment from a Participant Account to the Contractholder or to
whomever the Contractholder directs for the purpose of providing Plan
benefits other than those provided in Section 4.7(b). If it is necessary to
withdraw the entire Account Value of a Participant Account to make such
payment, the amount paid shall equal the Withdrawal Value, minus any
Section 6.5 charges. If it is not necessary to withdraw the entire Account
Value to make such payment, AUL shall reduce the Account Value of the
Participant Account by an amount sufficient to make the cash payment
requested and to cover the Withdrawal Charge and any Section 6.5 charges.
Notwithstanding the previous paragraph, in the first Contract Year in which
a Participant Account is established, the Contractholder may withdraw from
that Participant Account up to 10% of the sum of the Account Value of that
Participant Account (determined as of the later of the Contract Date or the
Contract Anniversary immediately preceding the request for the withdrawal)
plus Contributions made during that Contract Year, without application of
the Withdrawal Charge. In the next succeeding Contract Year, the
Contractholder may also withdraw from that Participant Account up to 10% of
the sum of the Account Value of that Participant Account (determined as of
the Contract Anniversary immediately preceding the request for the
withdrawal) plus Contributions made during that Contract Year, without
application of the Withdrawal Charge. In any subsequent Contract Year, the
Contractholder may withdraw from that Participant Account up to 10% of the
Account Value of that Participant Account (determined as of the Contract
Anniversary immediately preceding the request for the withdrawal) without
application of the Withdrawal Charge.
4.9 Conditions for Payment of Benefits:
(a) Any benefit request submitted by the Contractholder shall include
certification as to the purpose of the request for payment. The
Contractholder assumes full responsibility for determining whether any
benefit payment is permitted under applicable law and under the terms
of the Plan. AUL may rely solely upon the representations of the
Contractholder made in the benefit request.
(b) Withdrawals from a Participant Account's share of any Investment
Option may not be made in an amount less than the smaller of $500 or
the Participant Account's entire share of the Investment Option as of
the close of business on the Valuation Date that AUL receives that
withdrawal request (or due proof of death, if received later), in a
form acceptable to AUL, at its Home Office. If a withdrawal reduces
the Participant Account's share of an Investment Option to less than
$500, such remaining share shall also be withdrawn.
(c) Withdrawals from a Participant Account's share of the Fixed Interest
Account shall be made on a first-in/first-out basis so that all or a
portion of the amounts credited to the Participant Account's share of
the Fixed Interest Account which have been on deposit for the longest
period of time, as well as the interest credited thereon, shall be
withdrawn first.
(d) A withdrawal request shall be effective, and the Account Value to be
applied pursuant to Sections 4.1, 4.7, or 4.8 shall be determined, as
of the close of business on the Valuation Date that AUL receives a
proper withdrawal request (or due proof of death, if received later),
in a form acceptable to AUL, at its Home Office.
(e) AUL shall pay any cash lump sum to the Contractholder or to whomever
the Contractholder directs within 3 days from the appropriate
Valuation Date as determined in Subsection (d) above, except as AUL
may be permitted to defer such payment of amounts withdrawn from
P-12518(BR).II.6
the Variable Account in accordance with appropriate provisions of the
federal securities laws. AUL reserves the right to defer the payment
of amounts withdrawn from the Fixed Interest Account for a period of
up to 6 months after AUL receives the withdrawal request at its Home
Office.
(f) No withdrawals shall be permitted prior to the termination of this
contract except as provided in Sections 4.7 and 4.8.
5.1 Valuation of Mutual Fund or Mutual Fund Portfolio Assets: All assets of
each Mutual Fund or Mutual Fund Portfolio shall be valued as provided in
the prospectus for the applicable Mutual Fund or Mutual Fund Portfolio as
such prospectus may be amended or supplemented from time to time.
5.2 Accumulation Units: Any amounts allocated to any Investment Account on
behalf of a Participant shall be credited to his Participant Account in the
form of Accumulation Units on the basis of the value of such units in that
Investment Account as of the later of (1) the end of the Valuation Period
on which such amounts are received by AUL at its Home Office or (2) the end
of the Valuation Period on which the data required to establish the
Participant Account and allocate such amounts to the Participant Account
and to Investment Options are received by AUL at its Home Office. However,
if the initial Contribution for a Participant is allocated pursuant to
Section 3.2(c) on the next succeeding Valuation Period, the unit value as
of the end of that Valuation Period shall be used. Such crediting shall be
made separately for amounts allocated to each Investment Account. The
number of Accumulation Units in each Investment Account credited to each
Participant Account as of any Valuation Period shall be determined by
dividing the amounts allocated to that Investment Account for that
Participant Account as of such Valuation Period by the dollar value of one
Accumulation Unit in that Investment Account as of the close of business on
the applicable Valuation Period. The number of Accumulation Units thus
determined shall not be changed by any subsequent change in the dollar
value of the Accumulation Units.
5.3 Value of Accumulation Units: The value of an Accumulation Unit in the AUL
American Equity, Bond, Money Market, and Managed Investment Accounts was
established at $1.00 as of April 12, 1990. The value of an Accumulation
Unit in any other Investment Account available under this contract shall be
established at $1.00 as of the date of the first deposit to such Investment
Account. The value of an Accumulation Unit in each Investment Account as of
any Valuation Period thereafter is equal to the dollar value of one
Accumulation Unit in that Investment Account as of the immediately
preceding Valuation Period multiplied by the Net Investment Factor, as
defined in Section 5.4, for that Investment Account for the current
Valuation Period. The value of an Accumulation Unit for each Investment
Account shall be determined for each Valuation Period before giving effect
to any additions, withdrawals, or transfers. After such determination, the
additions, withdrawals, or transfers which are effective as of that day
shall then be made.
5.4 Determining the Net Investment Factor: The Net Investment Factor for each
Investment Account for any Valuation Period is determined by dividing (a)
by (b), and then subtracting (c) from that result, where:
(a) is equal to:
(1) the net asset value of a Mutual Fund or Mutual Fund Portfolio
share held in the Investment Account determined as of the end of
the current Valuation Period, plus
(G&W stand-alone)
P-12518(BR).II.7
(2) the per share amount of any dividend or other distribution, if
any, paid by the Mutual Fund or Mutual Fund Portfolio during the
current Valuation Period, plus or minus
(3) any credit or charge for any taxes paid or reserved for by AUL
during the current Valuation Period which are determined by AUL
to be attributable to operation of the Investment Account;
(b) is the net asset value of a Mutual Fund or Mutual Fund Portfolio share
held in the Investment Account determined as of the end of the
immediately preceding Valuation Period; and
(c) is a daily charge factor determined by AUL to reflect the charges
assessed against the assets of the Investment Account for mortality
and expense risks, as authorized by Section 6.1.
6.1 Mortality Risk and Expense Risk Charges: AUL shall deduct a daily mortality
risk charge and a daily expense risk charge equal to the daily equivalent
of an annual combined charge of 1.25% against the average daily net assets
of each Investment Account. These charges shall be reflected in the Net
Investment Factor as provided in Section 5.4(c).
6.2 Mutual Fund or Mutual Fund Portfolio Expenses: A Mutual Fund or Mutual Fund
Portfolio shall pay any investment advisory fee and certain other expenses,
which may include its ordinary operational and organizational expenses, and
any extraordinary expenses, as described in the current prospectus for that
Mutual Fund or Mutual Fund Portfolio as it may be amended or supplemented
from time to time. These expenses may vary from year to year. The net asset
value of each Mutual Fund or Mutual Fund Portfolio share reflects such
investment advisory fee and other expenses which are deducted from the
assets of such Mutual Fund or Mutual Fund Portfolio.
6.3 Administrative Charge: AUL shall deduct an administrative charge per
Contract Quarter equal to the lesser of $3.00 or 0.5% of the Account Value
on the last day of each Contract Quarter from each Participant Account in
existence on such day for as long as the Participant Account is in effect
during the Accumulation Period. This charge is to be prorated among each
subaccount of the Participant Account which corresponds to each Investment
Option utilized under this contract by that Participant Account. If the
entire balance of a Participant Account is applied or withdrawn before the
last day of the Contract Quarter pursuant to Sections 4.1, 4.7, 4.8, 8.2,
or 8.4, the administrative charge attributable to the period of time which
has elapsed since the first day of the Contract Quarter in which such
application or withdrawal of funds is made shall not be deducted from the
amount applied or withdrawn.
6.5 Other Charges: AUL reserves the right to deduct the appropriate premium tax
charge at the time annuity payments commence pursuant to Sections 4.1 and
4.7 or such other time that premium taxes are incurred by AUL. AUL also
reserves the right to deduct the appropriate charges for federal, state, or
local income taxes incurred by AUL that are attributable to the Variable
Account and its Investment Accounts.
(G&W stand-alone)
P-12518(BR).II.8
(1) the net asset value of a Mutual Fund or Mutual Fund Portfolio
share held in the Investment Account determined as of the end of
the current Valuation Period, plus
(2) the per share amount of any dividend or other distribution, if
any, paid by the Mutual Fund or Mutual Fund Portfolio during the
current Valuation Period, plus or minus
(3) any credit or charge for any taxes paid or reserved for by AUL
during the current Valuation Period which are determined by AUL
to be attributable to operation of the Investment Account;
(b) is the net asset value of a Mutual Fund or Mutual Fund Portfolio share
held in the Investment Account determined as of the end of the
immediately preceding Valuation Period; and
(c) is a daily charge factor determined by AUL to reflect the charges
assessed against the assets of the Investment Account for mortality
and expense risks, as authorized by Section 6.1.
6.1 Mortality Risk and Expense Risk Charges: AUL shall deduct a daily mortality
risk charge and a daily expense risk charge equal to the daily equivalent
of an annual combined charge of 1.25% against the average daily net assets
of each Investment Account. These charges shall be reflected in the Net
Investment Factor as provided in Section 5.4(c).
6.2 Mutual Fund or Mutual Fund Portfolio Expenses: A Mutual Fund or Mutual Fund
Portfolio shall pay any investment advisory fee and certain other expenses,
which may include its ordinary operational and organizational expenses, and
any extraordinary expenses, as described in the current prospectus for that
Mutual Fund or Mutual Fund Portfolio as it may be amended or supplemented
from time to time. These expenses may vary from year to year. The net asset
value of each Mutual Fund or Mutual Fund Portfolio share reflects such
investment advisory fee and other expenses which are deducted from the
assets of such Mutual Fund or Mutual Fund Portfolio.
6.3 Administrative Charge: AUL shall deduct an administrative charge per
Contract Quarter equal to the lesser of $7.50 or 0.5% of the Account Value
on the last day of each Contract Quarter from each Participant Account in
existence on such day for as long as the Participant Account is in effect
during the Accumulation Period. This charge is to be prorated among each
subaccount of the Participant Account which corresponds to each Investment
Option utilized under this contract by that Participant Account. If the
entire balance of a Participant Account is applied or withdrawn before the
last day of the Contract Quarter pursuant to Sections 4.1, 4.7, 4.8, 8.2,
or 8.4, the administrative charge attributable to the period of time which
has elapsed since the first day of the Contract Quarter in which such
application or withdrawal of funds is made shall not be deducted from the
amount applied or withdrawn.
6.5 Other Charges: AUL reserves the right to deduct the appropriate premium tax
charge at the time annuity payments commence pursuant to Sections 4.1 and
4.7 or such other time that premium taxes are incurred by AUL. AUL also
reserves the right to deduct the appropriate charges for federal, state, or
local income taxes incurred by AUL that are attributable to the Variable
Account and its Investment Accounts.
(Corporate stand-alone)
P-12518(BR).II.8
(1) the net asset value of a Mutual Fund or Mutual Fund Portfolio
share held in the Investment Account determined as of the end of
the current Valuation Period, plus
(2) the per share amount of any dividend or other distribution, if
any, paid by the Mutual Fund or Mutual Fund Portfolio during the
current Valuation Period, plus or minus
(3) any credit or charge for any taxes paid or reserved for by AUL
during the current Valuation Period which are determined by AUL
to be attributable to operation of the Investment Account;
(b) is the net asset value of a Mutual Fund or Mutual Fund Portfolio share
held in the Investment Account determined as of the end of the
immediately preceding Valuation Period; and
(c) is a daily charge factor determined by AUL to reflect the charges
assessed against the assets of the Investment Account for mortality
and expense risks, as authorized by Section 6.1.
6.1 Mortality Risk and Expense Risk Charges: AUL shall deduct a daily mortality
risk charge and a daily expense risk charge equal to the daily equivalent
of an annual combined charge of 1.25% against the average daily net assets
of each Investment Account. These charges shall be reflected in the Net
Investment Factor as provided in Section 5.4(c).
6.2 Mutual Fund or Mutual Fund Portfolio Expenses: A Mutual Fund or Mutual Fund
Portfolio shall pay any investment advisory fee and certain other expenses,
which may include its ordinary operational and organizational expenses, and
any extraordinary expenses, as described in the current prospectus for that
Mutual Fund or Mutual Fund Portfolio as it may be amended or supplemented
from time to time. These expenses may vary from year to year. The net asset
value of each Mutual Fund or Mutual Fund Portfolio share reflects such
investment advisory fee and other expenses which are deducted from the
assets of such Mutual Fund or Mutual Fund Portfolio.
By adding the following first paragraph to Section 6.3:
6.3 AUL hereby waives the administrative charge described hereafter in this
Section 6.3.
6.5 Other Charges: AUL reserves the right to deduct the appropriate premium tax
charge at the time annuity payments commence pursuant to Sections 4.1 and
4.7 or such other time that premium taxes are incurred by AUL. AUL also
reserves the right to deduct the appropriate charges for federal, state, or
local income taxes incurred by AUL that are attributable to the Variable
Account and its Investment Accounts.
(G&W Companion)
(Corporate Companion)
P-12518(BR).II.8
6.6 Reduction or Waiver of Certain Charges: AUL may reduce or waive the amount
of the Withdrawal Charge or the administrative charge discussed in Section
6.3 where the expenses associated with the sale of this contract or the
administrative costs associated with this contract are reduced, or where
this contract is sold to the directors or employees of AUL or any of its
affiliates, or to directors or any employees of the AUL American Series
Fund, Inc.
8.1 Right of Contractholder to Terminate: This contract shall terminate if the
Contractholder gives written notice to AUL that this contract is to be
terminated. In such event, the termination notice shall be effective as of
the close of business on the Valuation Date that AUL receives a proper
written Contractholder notice at its Home Office. This date shall be the
effective date of termination. This contract shall also terminate
automatically as of the date that there are no Participant Accounts
maintained hereunder.
9.2 AUL's Annual Statement: No provision or condition of this contract shall be
deemed to control, determine, or modify any annual statement of AUL made to
any insurance department, contractholder, regulatory body, or other person,
nor shall anything in such annual statement be deemed to control,
determine, or modify the valuation provided for in this contract, nor the
values determined, nor the market, book, or other value of any asset in any
Investment Account or Mutual Fund or Mutual Fund Portfolio, nor any of the
other provisions and conditions of this contract.
9.8 Election, Notice, or Direction Requirements: Wherever in this contract
reference is made to the Contractholder making a request or giving notice
or direction, such request, notice, or direction must be in writing, or in
a form otherwise acceptable to AUL, and must be submitted to and received
by AUL at its Home Office before becoming effective.
9.15 Voting:
(a) AUL is the legal owner of the shares of a Mutual Fund or Mutual Fund
Portfolio held by the Investment Accounts of the Variable Account. In
accordance with its view of present law, AUL shall exercise voting
rights attributable to the shares of each Mutual Fund or Mutual Fund
Portfolio held in the Investment Accounts at any regular and special
meetings of the shareholders of a Mutual Fund on matters requiring
shareholder voting under The Investment Company Act of l940 or other
applicable laws. AUL shall exercise these voting rights based on
instructions received from persons having the voting interest in
corresponding Investment Accounts of the Variable Account. However, if
The Investment Company Act of l940 or any regulations thereunder
should be amended, or if the present interpretation thereof should
change, and as a result AUL determines that it is permitted to vote
the shares of a Mutual Fund or Mutual Fund Portfolio in its own right,
it may elect to do so. AUL will vote shares of any Investment Account,
if any, that it owns beneficially in its own discretion, except that
if a Mutual Fund or Mutual Fund Portfolio offers its shares to any
insurance company separate account that funds variable life insurance
contracts or if otherwise required by applicable law, AUL will vote
its own shares in the same proportion as the voting instructions that
are received in a timely manner for contracts and Participant Accounts
participating in the Investment Account.
(Corporate stand-alone)
(G&W stand-alone)
P-12518(BR).II.9
6.6 Reduction or Waiver of Certain Charges: AUL may reduce or waive the amount
of the Withdrawal Charge or the administrative charge discussed in Section
6.3 where the expenses associated with the sale of this contract or the
administrative costs associated with this contract are reduced, or where
this contract is sold to the directors or employees of AUL or any of its
affiliates, or to directors or any employees of the AUL American Series
Fund, Inc.
By adding the following first paragraph to Section 7.3:
7.3 Right of AUL to Change Charges:
Because the administrative charge described in Section 6.3 has been waived
by AUL, the maximum administrative charge discussed hereafter in this
Section 7.3 shall be $0.00.
8.1 Right of Contractholder to Terminate: This contract shall terminate if the
Contractholder gives written notice to AUL that this contract is to be
terminated. In such event, the termination notice shall be effective as of
the close of business on the Valuation Date that AUL receives a proper
written Contractholder notice at its Home Office. This date shall be the
effective date of termination. This contract shall also terminate
automatically as of the date that there are no Participant Accounts
maintained hereunder.
9.2 AUL's Annual Statement: No provision or condition of this contract shall be
deemed to control, determine, or modify any annual statement of AUL made to
any insurance department, contractholder, regulatory body, or other person,
nor shall anything in such annual statement be deemed to control,
determine, or modify the valuation provided for in this contract, nor the
values determined, nor the market, book, or other value of any asset in any
Investment Account or Mutual Fund or Mutual Fund Portfolio, nor any of the
other provisions and conditions of this contract.
9.8 Election, Notice, or Direction Requirements: Wherever in this contract
reference is made to the Contractholder making a request or giving notice
or direction, such request, notice, or direction must be in writing, or in
a form otherwise acceptable to AUL, and must be submitted to and received
by AUL at its Home Office before becoming effective.
9.15 Voting:
(a) AUL is the legal owner of the shares of a Mutual Fund or Mutual Fund
Portfolio held by the Investment Accounts of the Variable Account. In
accordance with its view of present law, AUL shall exercise voting
rights attributable to the shares of each Mutual Fund or Mutual Fund
Portfolio held in the Investment Accounts at any regular and special
meetings of the shareholders of a Mutual Fund on matters requiring
shareholder voting under The Investment Company Act of l940 or other
applicable laws. AUL shall exercise these voting rights based on
instructions received from persons having the voting interest in
corresponding Investment Accounts of the Variable Account. However, if
The Investment Company Act of l940 or any regulations thereunder
should be amended, or if the present interpretation thereof should
change, and as a result AUL determines that it is permitted to vote
the shares of a Mutual Fund or Mutual Fund Portfolio in its own right,
it may elect to do so. AUL will vote shares of any Investment Account,
if any, that it owns beneficially in its own discretion, except that
if a Mutual Fund or Mutual Fund Portfolio offers its shares to any
insurance company separate account that funds variable life insurance
contracts or if otherwise required by applicable law, AUL will vote
its own shares in the same proportion as the voting instructions that
are received in a timely manner for contracts and Participant Accounts
participating in the Investment Account.
(G&W Companion)
(Corporate Companion)
P-12518(BR).II.9
(b) The person having the voting interest under this contract is the
Contractholder. Unless otherwise required by applicable law, the
number of Mutual Fund or Mutual Fund Portfolio shares as to which
voting instructions may be given to AUL is determined by dividing the
value of all of the Accumulation Units of the corresponding Investment
Account attributable to this contract on a particular date by the net
asset value per share of that Mutual Fund or Mutual Fund Portfolio as
of the same date. Fractional votes will be counted. The number of
votes as to which voting instructions may be given will be determined
as of the date coincident with the date established by the applicable
Mutual Fund or Mutual Fund Portfolio for determining shareholders
eligible to vote at the meeting of that Mutual Fund. If required by
the Securities and Exchange Commission or under any contract with any
of the Mutual Funds made available by AUL, AUL reserves the right to
determine in a different fashion the voting rights attributable to the
shares of a Mutual Fund or Mutual Fund Portfolio.
(c) Voting rights attributable to this contract for which no timely voting
instructions are received will be voted by AUL in the same proportion
as the voting instructions which are received in a timely manner for
all contracts and Participant Accounts participating in that
Investment Account.
(d) Neither the Variable Account nor AUL is under any duty to inquire as
to the instructions received or the authority of Contractholders,
Participants, or others to instruct the voting of Mutual Fund or
Mutual Fund Portfolio shares.
(e) Every person or entity having such voting rights shall receive such
reports or prospectuses concerning the Variable Account or a Mutual
Fund or Mutual Fund Portfolio as may be required by applicable federal
law.
AMERICAN UNITED LIFE INSURANCE COMPANY
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Chairman of the Board,
President, & Chief Executive Officer
Attest
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Secretary
CONTRACTHOLDER
By: ____________________________________
Title___________________________________
Date____________________________________
P-12518(BR).II.10
SCHEDULE A
The following Investment Accounts are made available to the Contractholder by
AUL. Amounts allocated to any Investment Account identified below shall be
invested in the shares of the corresponding Mutual Fund or Mutual Fund Portfolio
listed below.
Investment Account Mutual Fund or Mutual Fund Portfolio
----------------- ------------------------------------
AUL American Bond AUL American Bond
AUL American Equity AUL American Equity
AUL American Managed AUL American Managed
AUL American Money Market AUL American Money Market
AUL American Tactical Asset Allocation Portfolio AUL American Tactical Asset Allocation Portfolio
▇▇▇▇▇ American Growth ▇▇▇▇▇ American Growth
▇▇▇▇▇▇▇ Social Mid-Cap Growth ▇▇▇▇▇▇▇ Social Mid-Cap Growth
Fidelity VIP Equity-Income Fidelity VIP Equity-Income
Fidelity VIP Growth Fidelity VIP Growth
Fidelity VIP High Income Fidelity VIP High Income
Fidelity VIP Overseas Fidelity VIP Overseas
Fidelity VIP II Asset Manager Fidelity VIP II Asset Manager
Fidelity VIP II Contrafund Fidelity VIP II Contrafund
Fidelity VIP II Index 500 Fidelity VIP II Index 500
Janus Aspen Series Flexible Income Portfolio Janus Aspen Series Flexible Income Portfolio
Janus Aspen Series Worldwide Growth Portfolio Janus Aspen Series Worldwide Growth Portfolio
PBHG Insurance Series Growth II PBHG Insurance Series Growth II
PBHG Insurance Series Technology PBHG Insurance Series Technology
and Communication and Communication
SAFECO Resource Series Trust Equity Portfolio SAFECO Resource Series Trust Equity Portfolio
SAFECO Resource Series Trust Growth Portfolio SAFECO Resource Series Trust Growth Portfolio
▇. ▇▇▇▇ Price Equity-Income Portfolio ▇. ▇▇▇▇ Price Equity-Income Portfolio
P-12518(BR).II.11